Leases

Lease Basics

What a Lease Represents

A lease is the formal agreement between you and a tenant for a specific unit. It defines the rent amount, payment schedule, start and end dates, and deposit terms. In the system, a lease links a tenant to a unit and drives financial tracking — rent charges, payments, and balance calculations all flow from the lease.

Lease Lifecycle

Every lease moves through a defined lifecycle:

Draft — created but not yet active; terms can still be adjusted
Active — the lease period has started; rent charges and payments are tracked
Expired — the end date has passed; the tenant may still occupy the unit on month-to-month terms
Settled — the lease has been formally closed out, deposit returned or applied, and final balance resolved

Key Lease Fields

Each lease records:

Tenant — the person renting the unit
Unit — the specific space being rented
Rent amount — monthly rent due
Due date — day of the month rent is due (e.g., the 1st, the 15th)
Start date — when the lease period begins
End date — when the lease period ends
Security deposit — amount held against damages or unpaid rent

Creating a Lease

Selecting a Tenant and Unit

Go to Leases and click Add Lease
Select a tenant from your tenant list (or create a new tenant first)
Select the unit the tenant will occupy

The tenant and unit must already exist in the system. If the unit already has an active lease, you will need to settle the existing lease before creating a new one.

Setting Rent Amount and Due Date

Enter the monthly rent amount and the day of the month it is due. The system uses these values to generate recurring rent charges. For example, if rent is $1,200 due on the 1st, a $1,200 charge is posted on the 1st of each month during the lease period.

Start and End Dates

The start date determines when the lease becomes active and when rent charges begin. The end date marks the expected conclusion of the lease term. A standard residential lease is typically 12 months, but you can set any duration.

Security Deposit

Enter the deposit amount the tenant has paid or will pay. The deposit is tracked separately from rent and is addressed during the settlement process when the tenant moves out.

Saving the Lease

After filling in all fields, click Save. The lease is created and, if the start date has passed, immediately becomes active. The tenant can see the lease details in their portal, and rent charges begin posting according to the schedule.

Editing a Lease

What Can Be Changed

You can edit most lease fields after creation, including rent amount, due date, end date, and deposit. Changes to rent amount affect future charges — past charges are not retroactively adjusted.

Editing Terms

From the lease detail page, click Edit to modify the terms. Common edits include:

Adjusting rent for a renewal period
Extending or shortening the end date
Updating the security deposit amount
Correcting data entry errors

Updating Rent Amount

When you update the rent amount on an active lease, the change applies to the next billing cycle. For example, if you increase rent from $1,200 to $1,300 mid-month, the current month’s charge remains $1,200 and the new amount takes effect next month.

Changing Dates

You can adjust the start and end dates of a lease. Extending the end date effectively extends the lease term. Shortening it sets an earlier termination date. The system adjusts future rent charges accordingly.

Lease Renewals

How Renewals Work

When a lease approaches its end date, you can renew it by extending the end date or creating a new lease for the same tenant and unit. Renewing preserves the continuity of the tenant’s record and financial history.

Creating a Renewal

To renew, either:

Extend the current lease — edit the end date to a new date (e.g., add 12 months)
Create a new lease — settle the old lease and create a new one with updated terms (useful when rent is changing significantly or terms are being renegotiated)

Renewal vs. New Lease

Extending an existing lease is simpler and preserves a single continuous record. Creating a new lease provides a clean break — useful for significant term changes, new deposit amounts, or when you want a fresh audit trail. Either approach is valid; choose based on your preference.

Move-Out and Settlement

Initiating Move-Out

When a tenant is leaving, navigate to the lease and begin the settlement process. This involves reviewing the final balance, determining the deposit disposition, and formally closing the lease.

Settlement Process

Settlement walks you through:

Final balance review — all outstanding charges and payments
Deposit disposition — return the full deposit, deduct for damages or unpaid rent, or apply the deposit to the balance
Final charges — any remaining amounts (cleaning fees, repair costs, etc.)
Closing — marking the lease as settled

Deposit Return

During settlement, you specify how much of the deposit to return. The system calculates the net amount: deposit minus any deductions. The deductions and return amount are recorded in the ledger for a complete audit trail.

Final Balance

After settlement, the lease shows a final balance of zero (all charges paid, deposit accounted for) or a remaining balance (if the tenant still owes money). The lease status changes to Settled and no further charges are posted.

Lease History and Status

Viewing Lease Status

The Leases page shows all leases with their current status badge: Active, Expired, Settled, or Draft. Click any lease to see its full details, including the complete transaction history.

Active vs. Expired

Active — the current date is between the start and end dates; rent is being charged
Expired — the end date has passed but the lease has not been formally settled; the tenant may still be occupying the unit

An expired lease does not automatically end the tenancy. You should either renew the lease, settle it, or update the end date to reflect the actual arrangement.

Lease Timeline

The lease detail page shows a timeline of key events: creation, activation, any edits, rent charges, payments, and settlement. This provides a complete audit trail for each lease.

Audit Trail

Every change to a lease — creation, edits, charges, payments — is recorded with a timestamp. This audit trail is useful for resolving disputes, preparing tax records, and maintaining a clear history of the landlord-tenant relationship.