Invoicing is an integral component of operating a small business. An invoice serves as proof of sale by outlining the products sold or services offered, due dates, and the sum of money exchanged between two parties.
A good example of a business that makes frequent use of invoicing is rental property management — landlords and property managers often rely on invoices to outline rent payment terms and collect monthly rent.
In this article, we'll discuss the essential elements that should be included in a rental invoice and present a quality rent invoice template that you can use in your own rental property business.
As a landlord, one of your main responsibilities is to ensure your tenants are aware of all the costs associated with renting the property. An invoice removes any ambiguity by outlining all rental costs in a single document. Moreover, invoicing helps you keep track of your cash flow and stay on top of your billing at all times.
A typical rental invoice includes all the recurring costs that tenants incur when occupying a property. This ranges from ubiquitous expenses like the amount of rent and cost of electricity to more specific costs like additional building fees and other utilities that the landlord takes care of. The subtotal of these expenses is generally highlighted on the invoice.
The invoice typically includes a due date to ensure payment deadlines are respected and might also specify the payment method that the tenant will use to pay the bill. In most cases, landlords use invoices in two different ways: before the tenant pays rent and after the tenant pays rent.
In the first scenario, the landlord creates an invoice document that includes all the owed charges and sends it to the tenant. Upon receiving the invoice, the tenant proceeds to make the monthly rental payment before the due date outlined on the document. Sending monthly rent invoices before payment is made is a great way to ensure late fees and other owed expenses are resolved.
The second option is to send the invoice after the rental payment has been made by the tenant. While this might seem confusing at first glance, sending an invoice after a month's rent has been paid is comparable to using a standard business receipt.
As you would expect, using a free invoice template saves you the hassle of having to create one yourself every time you need to bill a renter. There are plenty of software solutions that allow you to generate rental invoice templates with the click of a button; however, few can match Skynova's invoice template in terms of simplicity and overall quality.
By simply filling out a form, landlords can generate professional-looking invoices in a matter of minutes. The invoices are sleekly designed and are available in two invoice formats: printable and digital.
Here are the main elements that are included in a Skynova invoice:
While highly professional and sleek-looking in itself, you still need to add certain elements to the basic Skynova invoice template if you want to create your own customized template. Here are the customization options that are offered by Skynova:
When creating rental invoices, it's always important to remember the intended purpose of the task: getting paid on time. To that end, your invoice should be clear and designed in a way that makes it easy for the tenant to make the payment.
Here are some tips to help you create the ideal rental invoice:
While not as time-consuming as some other business ventures, managing rental properties is still a challenging task that requires a decent amount of effort. Online solutions like the Skynova invoice template allow you to focus more on your business by streamlining invoicing and making it a simple task that can be carried out in seconds.
The content within this article is meant to be used as general guidelines and may not apply to your specific situation. Always consult with a professional accountant to ensure you're meeting accounting standards.