I would make sure you state this in your leases, but we state that all payments are allocated to the oldest "charge" on their account first and then allocated chronologically forward from there. This is useful for evictions as in most states it's much easier to evict via unlawful detainer (unpaid rent) than it is for damage to the property, etc. If they refuse to pay for damages to the property, then you charge it to their account (make sure it's legit and you don't overcharge). The next rent payment is first applied to the delinquent charge and the remainder to the rent. If they don't pay the remainder, you can evict via unlawful detainer, which is usually a quicker and less costly eviction.
Jan 28, 2011