how to apply rent payment/ back due vs current

We have arrears from 2010.
The tennant started paying again in 2011. Should we list that as current rent and only apply certain payments to the old balance.We do not yet have a formal agreement for the old balance.
In Leasing Property - Asked by doug s. - Jan 25, 2011
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Rob B.
Chandler, AZ

It would be appropriate to apply the rents to the "oldest and coldest" balance due. In the event you end up in court with this tenant you may be able to charge not only late fees for the costs in collection delay, but you may also be able to charge an interest rate for the time that your money has been outstanding. This however is a practical answer and you should in matters of this type check with your attorney for legal advice. Good luck Doug..... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email:

Jan 25, 2011
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Mark and Paul B.
Pocatello, ID

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
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