A letting statement is produced by your letting agent and will outline your rental income and list any deductions made by the agent during the rental period.
When recording a transaction as income from a letting agent during the bookkeeping process, you will receive an alert reminder to complete the process using the statement you received from the agent. This enables you to break down the statement at a later date without slowing your bookkeeping progress down.
After clicking on the notification, you will be prompted to break down your letting statement line by line, allocating each amount to a category using the 'add line' button.
Additionally, for each line, you may need to include some extra information where appropriate:
The date range to which the entry applies, e.g. the rental period
Whether the entry increases the property value, e.g. building improvements
And whether you are creating a new asset, e.g. new household appliances over £200
Before breaking down each line, you can assign a statement number and letting agent at the beginning of the form.
As displayed in the example below, you typically receive rent from your tenants, categorised as 'Rent & deposits.'
You will be charged a fee by the letting agent, categorised as 'Management fees.'
Both of these categories will span a date range.
You may also incur charges for any building works managed by the letting agent, categorised as 'Maintenance & building services.' This may or may not increase the property's value.
Unless the letting agent is holding money on your account, the grand total will usually match the 'Payment to you', as seen at the top of the form.
From this point, you can choose to save a draft and return to the page at a later time, accessible through the 'Letting statements' section of the side panel, or proceed with saving to complete the process.