Finance Managing Rent Arrears as an Arrangement

Some organisations want to manage a tenant's arrears through an arrangement whereby the tenant will pay extra each week or fortnight until the arrears debt is repaid.  

Many organisations just have the tenant increase their payment, and in Chintaro this increased payment will eventually reduce the debt.  Because all "over" payments made in Chintaro defaults to rent, this will work fine.

If you wish to setup the Rent Arrears arrangement amount as a separate to normal rent to track that the extra payments are bring paid as agreed, you will need to:

• 1. Create/Check that the transaction types for a rent arrangement are in Chintaro
• 2. Change the transaction group from Rent to Rent Arrears
• 3. Set up the Arrangement Payment Frequency

This solution also links to information on:

• How does Chintaro split the payment from the tenant(s)?

1. Create/Check that the transaction types for a rent arrangement are in Chintaro

The two transaction types you will need to set up an arrangement, are:

- Rent Arrears Charge

- Rent Arrears Payment

If these are not in Chintaro, from the Home screen, click System Maintenance> Reference Tables> Transaction Types.

Enter the transaction types as they appear below:

Column	Screenshot	Description
Transaction Type		Either: - Rent Arrears Charge - Rent Arrears Payment
Active		Must be ticked on for both charge and payment
Debit		Must be ticked for the charge only
Split		Must be ticked for the payment only
Txn Group		Select Rent Arrears for both transaction types
Arrangement		Must be ticked for the payment only
Arrangement Charge ID		Must have the ID of the Rent Arrears charge in the box for the payment only

2. Change the transaction group from Rent to Rent Arrears

To create an arrangement, open the tenancy screen. The amount of rent owing will appear at the top of the screen in the balances section:

The first step is to enter a credit to the rent, so that you will move it to a new transaction group of Rent Arrears.

Click Enter Transaction and enter a Credit Rent Adjustment (CR Rent Adj) transaction for the total of the Rent Arrears amount, which will bring the balance to $0.00.  Use the comments field to record the details of the Arrangement you made.

Click Enter Transaction and enter a Rent Arrears Charge for the same amount you used in the previous step.  The Transaction Group balance will then show the amount agreed to repay:

3. Set up the Arrangement Payment Frequency

To tell Chintaro how to split the payments to rent and rent arrears arrangement, click Payment Arrangements:

Select the frequency of the payments as Weekly or Fortnightly. 

In the Transaction Type drop down, select Rent Arrears Payment and enter the amount that the tenant has agreed to pay extra each week or fortnight.

Enter or select a Start Date as the date the arrangement was made, or any day before the first payment will be made.

How does Chintaro split the payment from the tenant(s)?

Each time the tenant makes a payment and providing there is enough paid to cover the rent and the arrears, the payment will be split into a Rent Payment and a Rent Arrears Payment.

Click here for more information on Tenancy Screen - Payment Splits & Arrangements