Why and how to create a simple tenant referencing system and Xero

I don't know about you, but I like an easy life where systems, people and processes all work in harmony.

Well here's a very simply tip and tool you can use to make your life easy.

What YOU must do first
1. Ask all your tenants to pay on the 1st day of the month
2. Issue them with a reference number and
3. Ask them to ensure that they use it for all rental payments

Why?
If everyone pays on the same day, this will reduce the admin overhead associated with managing payments.

Here's an example of how we use it in at London Room Lets

When a new tenant is acquired...

• Issue everyone with a Reference
• For example, your property address is: 16 Allen Avenue and Chris George lives in Room 4, then create the following Ref:
• House Ref: 16AA
• RoomRef R4
• Tenant Ref: GeorgeC
• Ref they must quote is therefore: 16AAR4GeorgeC

Each month, on the 1st, check your statements and everyone should have paid, obviously where they haven't chase with a polite reminder and follow up.

Now because they have used the reference that you have issued (16AAR4GeorgeC), open Xero, set up a rule and reconcile the payments - depending on how many tenants you have, this should take no time at all.

This is why we recommend Xero to you this week.  "It does what it says on the can" and makes life simple.

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I wish you success as you become more familiar with these tips & tools and if you have a tip or tool that you'd like to share, then let us know here

All the best in your journey & remember that "knowledge is potential power".

Hanna
LondonRoomLets.co.uk