How does Overdue Rent work?
In Pendo, you can view Overdue Rent in individual Property/Unit pages as well as on your Performance page.
Click the stats in red and you can see which Tenant is missing how much rent.
Overdue Rent is strictly tied to Leases – Lease terms (including rent amount, frequency, start/end dates), to be exact. After a Lease is added, the system would expect a total rent amount = frequency * each rent amount paid by the Tenant(s) associated with the Lease.
For instance, if a Lease is created for Tenant A in Unit 101 starting Jan 1st with a monthly rent amount of $1000, and if no rent payments were logged for Tenant A, on Mar 1st, Unit 101 would have 3 Overdue Rent Payments and the total Overdue Rent Amount would be $3000. If a rent payment of $1000 from Tenant A is logged for Unit 101, the Overdue Rent Payments would become 2 and the Overdue Rent Amount would become $2000, consisting of two $1000 Overdue Rent Payments.
Why does the system tell me that a Property is missing rent on a certain date but there is a rent payment on that date?
After the system calculates Overdue Rent Amount, it assigns subsequently received rent payments as the earliest missing payments, no matter when the payments are actually received. The idea is that one wouldn’t be paying for February’s rent if they haven’t paid for January’s rent.
For example, if a Lease is created for Tenant A in Unit 101 starting Jan 1st with a monthly rent amount of $1000, payable on 1st day of each month. If on Mar 1st the only rent payment received from Tenant A is $1000 on Feb 1, then, there would be a $1000 Overdue Rent for Feb 1, and a $1000 Overdue Rent for Mar 1, since the $1000 received on Feb 1 is filling in for January’s rent.
Another example: if on Mar 1st the only rent received from Tenant A is $500 on Mar 1, then there would be $500 Overdue Rent for Jan 1, $1000 Overdue Rent for Feb 1, and $1000 Overdue Rent for Mar 1. The system would see the $500 on Mar 1 as a ‘late’ partial rent payment for Jan.
How does the system know whether a rent entry is linked to a particular Lease?
How the system determines that is based on three factors when logging a payment: Tenant, Property/Unit, and Rent category.
If all three factors match with a Lease, the transaction is then effectively counted as ‘expected rent’ or counted towards Overdue Rent for the Lease.