What is the difference if I create a lease for my tenants to pay individually vs. jointly
When you move in your tenant(s), the type of lease you choose depends on how you want your tenant(s) to pay: individually or jointly.
Tenants pay individually
The first lease type is "tenants to pay individually". With this invoicing type, you can move in tenants that will be individually responsible for rent and other invoices that are added to the lease. The rent, deposit, and other lease transaction amounts will be split between tenants with an exact portion for each tenant. This means the system will post separate invoices for each of your tenants.
If you move in more than one tenant paying individually to the same unit, each tenant will see their own lease information and their exact rent amount to pay and cannot pay other roommates' invoices.
1. Late fees will be applied to the exact portion of the tenant's separate rent.
2. Your tenants can pay their portion of rent or other transactions and make partial payments if you have that setting enabled.
3. Management fees will be applied to the total rent amount.
On the second step "Lease transactions" you can set up the rent amount that each tenant will pay. For example, if the total amount of the invoice is $2000, you can set it to have tenant A pay $1200 and tenant B pay the rest $800. Meaning whatever amount you set for each tenant, it cannot be lower or higher than the total rent amount.
The same rule applies to Deposits and Other lease recurring transactions.
Tenants pay jointly
With this invoicing type, all the tenants are collectively responsible for the whole rent invoice and other lease related invoices. The tenants will each see one invoice with a full rental amount and will be collectively responsible for paying it. The tenants can pay partially, or one tenant can pay the whole invoice amount. This type of lease would be used if a husband and wife rent the unit or if college roommates are all named on the same lease.
If you would like to remove or add some tenants, you will need to edit the lease.
The removed tenants will receive feed notifications that you have removed them from the lease.
Sept 20, 2021