Close Out Tenant Accounts & Send to Collections

  1. Go to QuickBooks Customer center and scroll down to the old tenant.
    1. Get their folder from the filing cabinet and pick out the
      1. Lease
      2. Move out sheet that shows the damages you are charging them for.
      3. Rental Application
      4. Credit Report
      5. Employment Info
      6. Notice to leave premises
      7. Checks and bank info if available.
  2. Note the lease beginning and end dates
  3. Note the date when the new tenant moved in
  4. Notice if the lease is on month to month or a broken lease.
  5. Add in all Rent Invoices until the date that the new tenant moved in unless on Month to Month.
  6. Add in Late Fees.
  7. Create an Invoice for the damages the tenant did and the repairs and rehab necessary to get the house ready for the new tenant. They are responsible for all of this except normal wear and tear.
  8. Add a Credit Memo for the Security Deposit. Use the Item that is connected to the security deposit account.
  9. Go to List, then Chart of Accounts to make sure their portion of the security deposit is Zeroed out.
  10. Create a General Journal Entry to make the balance down to zero. Use December 31st of that year so you can print a statement to December 30th and have the balance show up for collections.
    1. Debit Accounts Receivable and make sure you put the tenants name in and the Class
    2. Credit the Collections expense account
  11. Go back to the customer and make sure the account is Zeroed out and the Security Deposit is Zeroed out.
  12. Print out the Statement from when before they moved in to the Dec 30th of that year, That way the amount they owe will show up even though the account is zeroed out because you made the General Journal Entry on December 31st
  13. Collect up all the documents from #3 and add the statement to the pile.
  14. Scan all the documents. Recommended settings are 200 dpi and black and while so the file is not to big to email. Save to the collections folder on the desktop.
  15. Email to The collections lawyer and to Fabco. Do not forget to attach the file.
  16. In austenestates@gmail.com there is a group called collections which will email it to the Lawyer and Fabco at the same time.
  17. Paper clip the documents together and put back in the folder.
  18. Get a 1/2 ” red dot at stick on the right side of the folder by the name label.
  19. Handwrite Fabco and D.N. on the sticker and the date.
  20. Then file the folder in the collections drawer alphabetically by property.
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