Rent receipts come in handy in many situations
of confusion and non-compliance with rules
mentioned in a rent agreement. Accordingly,
it is beneficial for both parties, that is,
The Landlord and the Tenant.
Advantages For the Landlord
Sign Of Professionalism:
A rent receipt in the correct format helps
a landlord or their property manager highlight
their professional character in the market.
It is said that you sell what you show. Will
you like it if you buy something from a
supermarket and do not receive a receipt
for the same? No, right.
Similarly, a rent receipt gives the tenant
proof that a proper record has been kept
and that the money is going to the right
place. So, in this way, an image of
professionalism is maintained.
Proper Record Keeping:
A rent receipt format in word
comes in handy when
the landlord wants to keep a record of
payments. There can be cases where the client
pays the rent via cash, money order, or cheque.
In these cases, there are no chances to track
these payments.
Although the landlord might be able to keep
a record through the bank statements of
every month, a rent receipt is a more
solid and simple formula to do the same.
Through a rent receipt format in word, record keeping
can be accomplished easily, which can be
later provided as proof in any circumstance.
Relation Building:
Rent receipts formats are helpful at
many different levels. The fact that
it is used to create a history of
payments with both parties is an added
advantage of the document.
In cases where the tenant loses their
copy of the rent receipts, the
landlord might help them by providing
their copy so that the tenant can
pursue the tax benefits they are
looking forward to avail.
Dispute Resolution:
Maintenance of a record of rent receipts
ensures that there are no discrepancies
regarding the rent between both parties.
It also helps the landlord and the tenant
when disputes regarding the same matter
arise.
For example, there can be a situation
where the tenant claims to have paid
the rent on time, but the landlord has
received it late. Here, a return record
as a rent receipt can help prevent the
dispute from escalating.
However, this can't be used in cases
where a cheque has been issued for the
payment of rent. If a bad cheque has been
written, or there are non-sufficient funds
in the tenant's account, the landlord can
keep a copy of the bounced cheques to prove
his innocence.
Advantages For The Tenant
For Protection:
Today adulting is also associated with
living in rented places. It has become
a widespread practice now. But with the
perks, there are cons to this idea too.
There are situations where the agreements
between the tenant and the landlord turn
hostile because of the landlords'
unreasonable restrictions. In many spaces,
the landlords also deny the tenants from
providing a rent receipt. It saves them
from paying more taxes on their income
from the property.
That is why a rent receipt is the one
solution for the tenants, which can save
them from falling into the traps set up
by bad landlords.
For the Maintenance of a Clear History:
Recording payments helps in maintaining a
trail that can be sought out later. The
rent receipts kept with the tenant help
them in circumstances where they decide
to move out and change places. It also
comes in handy when tenants apply for
a home loan.
Without keeping a record in the form of
these rent receipts, it becomes tough
for the tenant to describe any rent
payment.
It also serves as proof of credibility,
which can be presented in front of any
other property owner you want to take
up on rent.
For Availing Tax Concessions:
As mentioned earlier, employers are
bound to provide their employees living
in rented accommodations with the HRA
or House Rent Allowance.
Although the amount of tax benefits
you can have is not fixed, there are
certain conditions you need to fulfill
to fit in this criteria, which have
been mentioned beforehand.