This article will equip you with the knowledge to seamlessly change the property ownership. Changing property ownership is a sensitive task that should only be done after all financial obligations to the former owner are settled. We will guide you through setting up financial ledgers for the new owner, adjusting invoices related to the tenancy, and updating associated settings to reflect the change.
Before changing property ownership, check whether the Change of Owner Wizard is suitable. Use the Wizard if the answer is No to all of the following:
There are arrears on the property
There are part-paid invoices
There are multiple ledgers outside the rent ledger
The old owner has already been paid out for rent past the settlement date
The new owner ledger is in a different Client/Trust Account
If you answered Yes to any of these, follow the manual process below.
Prerequisites
The tenant has cleared all pending dues to the previous owner.
The previous owner has been disbursed all funds owed, after collecting fees and settling creditor balances.
Step 1: Set Up the New Owner's Ledger
Navigate to Client/Trust Accounts > Owner Ledger Balance.
Click New Owner Ledger and name it consistently with your existing ledgers.
Note: The property will not be selectable at this point.
Step 2: Handle Rent Invoices During the Transition
If the changeover falls within an active rental period, void the current rent invoice.
Use Generate once-off rent invoice to create two separate invoices — one for each owner's period — selecting the correct ledger on each.
Receipt and disburse all funds due to the former owner before handling proceeds for the new owner.
Step 3: Reconcile with the Tenancy Ledger
Reconcile any discrepancy between the bank statement amount and what is due to the former owner. After disbursing the former owner's funds, apply remaining tenancy funds to the new owner's invoice.
Step 4: Update Fee Rates (if applicable)
If the new owner has a different management fee rate, update the fee rules before acknowledging receipt of new payments.
Step 5: Update Re-Leased Pay (if applicable)
If the property is linked to a designated bank account under Re-Leased Pay, see Updating Re-Leased Pay Accounts During a Property Ownership Change.
Step 6: Link the New Owner's Ledger
Under Property > Ledgers, add the new ledger and set it as the default.
Under Tenancy > Rent & Outgoings, update the ledger on current and future rent templates.
Edit the ledger on any outstanding invoices for the new owner under Invoices & Credits.