Rent Shortfalls

What is a Rent Shortfall?

When a lease is signed for a property, the terms will state a value for annual rent expected to be paid by the tenant. As such, when the data is correctly entered on Omni, expected transactions are generated for the rent that should be coming into the scheme. When rent is actually paid, there is the possibility that an underpayment might occur, so the difference between the expected value and that actually paid is known as the Rent Shortfall. The shortfall is still owed to the scheme as at the due date, and should be included on the investment valuation.

What has changed?

Omni (prior to version 12.5) stored the amount of shortfall for an expected rent transaction in the 'Additional details' section, which after importing, would appear on the 'Rent payments' screen. Although this stores the shortfall, and is included on the investment valuation there were potential issues with both VAT and shortfalls on the shortfall.

Version 12.5 will now store the shortfall as a new expected transaction (due at the original rent date) and as such consistency is preserved. Further, successive shortfalls may be recorded on an initial shortfall.

What about existing shortfall data?

If any shortfalls have been stored in Omni under the old system you may now convert these to expected transactions (and so use the new system). On the 'Rent payments' screen there is a button labelled 'Convert Shortfall' which, when clicked, will remove the shortfall entry on the screen, but create a respective expected transaction for the shortfall (whilst retaining the link to the tenant for easy importing). A confirmation message will be displayed to let you know that the shortfall has been successfully converted.

N.B. Shortfall amounts need to be converted one by one (e.g. clicking the button will not convert ALL shortfalls for that tenant, only the one selected).