In this article, we'll cover a few different scenarios for completing a change of tenancy, as the process may be slightly different depending on whether there will be a void period, or if the owner of the property needs to be updated.
If you're setting up your Mabdeck owners and tenants for the first time, you'll need to complete the process for setting up initial owners and tenants instead.
Before you begin
1. Make sure you have set up accounts for any new residents. If you're not sure how to do this, check out our article here.
2. Make sure you have added a reading onto the property for each supply type for the Change of Tenancy date. If your readings are going into Mabdeck automatically then you can just skip this step.
3. If you're completing a change of tenancy on a PAYG property, that the hub will need to be put into credit mode before the move in/out can be completed. Details on how to do this can be found here.
A new tenant is moving into a previously vacant property
When a property is void , you’ll notice that the Owner Account is also the Billable Person. Once you have set up an account for the new tenant, it’s a very simple process to move them in
Click the Accounts tab on the left of your screen, then search for the account that you would like to move into a property. Click on their name to be taken to their Account page.
Once you're on the account page, click the Properties button on the right of the screen, then select the "move account into properties" section
Select the property you would like to move the account into, then the move in date of the account. This will also be the billing from date on their first ever statement. You can also choose if you'd like to generate a Welcome Letter here too.
Click Move In to prompt the change of tenancy on the property. This will move the account into the property and create the welcome letter for the new tenant (if you have chosen to do so). This will also generate a final statement for the previous owner, who was responsible for the bills during the void period.
You can check that the move in has successfully completed by refreshing the account page, and selecting the properties tab. The property record will now appear in the View properties in this account section.
A tenant moves out, and the next tenant moves in immediately
If a tenant has moved out, and the new tenant is moving in immediately so that there will be no void period, moving the new tenant in will automatically end the tenancy for the previous resident.
Click the Accounts tab on the left of your screen, then search for the account that you would like to move into a property. Click on their name to be taken to their Account page.
Once you're on the account page, click the Properties button on the right of the screen, then select the "move account into properties" section
Select the property you would like to move the account into, then the move in date of the account. This will also be the billing from date on their first ever statement. You can also choose if you'd like to generate a Welcome Letter here too.
Click Move In to prompt the change of tenancy on the property. This will move the account into the property and create the welcome letter for the new tenant (if you have chosen to do so). This will also generate a final statement for the previous tenant, and move them out of the property.
You can check that the move in has successfully completed by refreshing the account page, and selecting the properties tab. The property record will now appear in the View properties in this account section.
A tenant moves out, and the bills become the responsibility of the owner account
If a tenant moves out and you know that a new tenant isn't moving in straight away, or the owner needs to be responsible for bills, then moving out the previous account will default statements to be generated in the owner name.
Click the Accounts tab on the left of your screen, then search for the account which is moving out of the property. Click on their name to be taken to their Account page.
Once you're on the account page, click the Properties button on the right of the screen, then select the "move out from properties" section
Select the property you would like to move the account out of, then the move out date of the account.
Click Move Out to prompt the change of tenancy on the property. This will move the account out of the property and generate a final statement for the resident. You can approve and download the statement which generates.
A change of ownership takes place on the property
To change the owner on a property, click the properties tab on the left of the screen and search for the property where you would like to complete the change of ownership. Click on the property record when it appears.
Click the small pencil icon next to the owner name.
Choose your new owner account on the form which appears, then select if you would like to keep the current tenant. Keeping the current tenant will simply update the owner record, and the tenant will remain in the property.
If you choose not to keep the current tenant, the current tenant will be moved out of the property and the new owner account will become responsible for the bills as both the owner and the tenant. This will automatically generate a final statement for your previous tenant too.
Select the start date or move in date of the owner and click Save.
Final Account Balance
Once the resident has moved out and the final bill has been raised, the account must be reviewed to confirm whether there is any outstanding balance or credit remaining.
If a debt remains on the account, the client should be informed of the outstanding balance, and the resident should be advised that they should not cancel their Direct Debit instruction until the outstanding balance has been paid in full. Where appropriate, the resident should be contacted to confirm the final balance and advised of the available payment arrangements to clear the account. The account should remain subject to the normal debt recovery process until the balance has been settled.
If a credit remains on the account, this should also be reviewed and the client informed so that the appropriate action can be taken in line with the agreed client process. Any refund or transfer of credit should be completed in accordance with the applicable procedure.
The final account balance should be checked and recorded before the move-out process is considered complete. You will also need to make sure to ask for a forwarding address in cases where we need to continue to chase for the outstanding balance
Former Tenant Debt Report
Any resident who moves out of a property with an outstanding debt remaining on their account after the final bill has been raised must continue to be included within the Former Tenant Debt reporting process.
The outstanding balance will carry forward into the new Aged Debt Report, where the account will continue to be monitored as former tenant debt until the balance has been paid in full or otherwise resolved in accordance with the applicable debt process.
When reviewing the Aged Debt Report, former tenant accounts should therefore not be treated as closed simply because the resident has moved out of the property. The account may no longer be active at the property, but any outstanding balance remains collectible and must continue through the appropriate debt recovery process.
Where a former tenant makes a payment after moving out, the payment should be allocated to the former tenant account and the outstanding balance updated accordingly. Once the balance has been cleared, the account can be removed from the relevant outstanding debt reporting in line with the normal reporting process.