How to Receive and Manage Guarantee Cheques in FalconPro Real Estate Software

How to Receive and Manage Guarantee Cheques in FalconPro Real Estate Software

Introduction

Guarantee cheques play a crucial role in real estate lease agreements as security deposits that landlords hold without cashing them. FalconPro Real Estate Software enables businesses to receive, track, and manage guarantee cheques without impacting installment payments. This guide explains how to record guarantee cheques correctly while keeping rental installments unaffected and trackable.

What is a Guarantee Cheque in Real Estate?

A guarantee cheque is a cheque that tenants provide as security for lease payments. Unlike regular rent payments:
✅ Landlords do not deposit it in the bank.
✅ It does not affect lease payment installments.
✅ Landlords hold it until all installments are paid.

This system ensures financial security for landlords in case tenants default on payments.

Receiving a Guarantee Cheque in FalconPro Real Estate Software

FalconPro registers guarantee cheques as separate fee items, ensuring they do not interfere with rental income tracking.

Steps to Register a Guarantee Cheque in a Contract:

  1. Open the Lease Contract
    • Navigate to Leasing → Contracts and select the active contract.
  2. Add a New Fee Item
    • Click Add New Item.
    • Search for Guarantee Cheque in the fee item list.
    • If the item does not exist, create it in the Master Files (explained in the next section).
  3. Enter the Guarantee Cheque Amount
    • For example, if the contract value is 30,000 AED, the guarantee cheque can also be 30,000 AED.
  4. Save the Contract
    • The system now records the guarantee cheque.

Recording the Guarantee Cheque Receipt

After adding the guarantee cheque to the contract, record it as received without marking it as a paid installment.

Steps to Record the Receipt:

  1. Click on “Receipt” in the contract.
  2. Select All Payment Items, including rent installments and the guarantee cheque.
  3. Unselect the Guarantee Cheque and delete all other installment selections.
  4. Process the Guarantee Cheque Receipt
    • Select the Bank Name where the cheque is held.
    • Mark the cheque as “Received Against Guarantee”.
    • Optionally, remove the date to keep it outside the installment schedule.
  5. Save the Receipt
    • ✅ The system records the guarantee cheque without marking it as a rent payment.
    • ✅ Installment payments remain due and are tracked separately.

Tracking Installments While Holding a Guarantee Cheque

FalconPro keeps rent installments separate from the guarantee cheque, enabling landlords to track unpaid dues accurately.

How the System Works:

  • The guarantee cheque stays in the system but does not trigger rent payment alerts.
  • Installments remain due, and the system automatically reminds landlords when they reach their due date.
  • When tenants make payments, FalconPro allows landlords to:
    ✅ Select specific installments to pay.
    ✅ Keep the guarantee cheque active until all installments are cleared.

Completing the Rental Payments and Releasing the Guarantee Cheque

Once tenants pay all installments, landlords can release or cancel the guarantee cheque.

Steps to Release the Guarantee Cheque:

  1. Confirm That All Installments Are Paid
    • Go to the Tenant’s Payment Ledger.
    • Ensure all due amounts are settled.
  2. Cancel the Guarantee Cheque
    • Open the Contract and Fees Section.
    • Locate the Guarantee Cheque Fee Item.
    • Remove it from the system.
  3. Save the Contract Update
    • ✅ The system removes the guarantee cheque, and lease payments are fully completed.

Setting Up Guarantee Cheque as a Fee Item (If Not Available)

If the Guarantee Cheque fee item does not appear in the system, landlords must create it manually.

Steps to Create a Guarantee Cheque Fee Item:

  1. Navigate to Administration → Master Files → Fees Items.
  2. Click on “New” to add a new fee item.
  3. Name the fee item “Guarantee Cheque”.
  4. Assign it to the correct financial category.
    • For example, categorize it under Liabilities to indicate that the cheque is held temporarily.
  5. Save the fee item.
    • Once created, this fee item becomes available for adding guarantee cheques to lease contracts.

Benefits of Properly Managing Guarantee Cheques

By handling guarantee cheques separately from rent installments, FalconPro Real Estate Software ensures:
✅ Proper financial tracking without affecting rental income.
✅ Installments remain due until fully paid.
✅ The system reminds landlords when installments are overdue.
✅ Guarantee cheques are securely held without affecting bank transactions.
✅ Easy release of guarantee cheques once all payments are settled.

Conclusion

FalconPro Real Estate Software provides a structured approach to handling guarantee cheques, ensuring they do not interfere with installment tracking. By registering, tracking, and releasing guarantee cheques correctly, real estate businesses can maintain accurate financial records while safeguarding against tenant defaults.

FAQs

  1. What happens if a tenant defaults on rent payments?
    • Landlords can use the Guarantee Cheque as security and proceed with legal action if necessary.
  2. Can FalconPro automatically notify when an installment is due?
    • Yes, FalconPro Real Estate Software generates automatic alerts when an installment is due.
  3. How do I release a guarantee cheque after the tenant completes all payments?
    • Once all installments are paid, remove the Guarantee Cheque Fee Item from the contract to indicate its release.
  4. Can the guarantee cheque be deposited into the bank?
    • No, guarantee cheques are held as security deposits and are not deposited unless needed due to payment default.
  5. Where can I track all received guarantee cheques?
    • Go to Reports → Cheque Management to view a list of all received and active guarantee cheques.

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