Accounting Default Settings | Preferences

Set up your Accounting Defaults in about 5 minutes to automate how financial activity is recorded in your account as your portfolio grows. By configuring these settings before adding tenants, you'll automatically apply consistent accounting rules, automate rent and other related charges and late fees, and generate accurate financial reports no matter how many properties you manage.

This guide explains how to configure Accounting Defaults in Rentec Direct, which will automatically apply to future tenant transactions, invoices, payments, and printed documents across your account.

Tip: You'll see references to automatic tenant notifications throughout the setup process. These notifications are enabled when adding a tenant or moving a tenant into a property. Learn more about enabling Automatic Email Notifications

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Why Accounting Defaults Matter

Accounting Defaults help automate your day-to-day accounting by:

• Automate when rent charges and late fees appear on a tenant ledger
• Standardizing accounting categories across tenants, properties, and owner transactions
• Reducing setup time when adding new tenants
• Ensuring clean, consistent financial records and reports

Before You Get Started

Important: To enable online payments, contact your Account Setup Advisor for assistance.

How to Set Up Accounting Defaults

In your Rentec Direct account: 

1. Click Settings
2. Under Financial, click Accounting Defaults
3. Choose your preferred options for:
   1. Financial Preferences
   2. Default accounting categories
   3. Printing preferences
4. Click Save Changes

💡 Tip: Hover over the “?” icon next to each setting for helpful details as you make your selection. You can also review helpful details, tips, and FAQ below.

Financial Preferences

These settings control how accounting rules are enforced and how transactions are displayed.

Core Accounting Rules

These settings help standardize your accounting and improve accuracy.

Use strict accounting rules? (Yes / No)

Requires every transaction to include a bank account and category. This helps automate best-practice accounting and prevents incomplete records.

Learn more about Rentec Direct's Full Accounting Features

Use parentheses instead of the minus sign? (Yes / No)

Displays negative amounts as (35.00) instead of -35.00.

Color negative balances red? (Yes / No)

Highlights negative balances visually so they’re easier to spot.

Automated Rent & Late Fee Timing

These settings let you automate when rent charges and late fees post, so tenants see charges in advance and automatically receive timely notifications without manual follow-up.

Default number of days early to create a rent charge

Example: 5

The rent charge will automatically post to the tenant ledger 5 days before rent is due. Tenants can view the charge in their portal, and an automated reminder email is sent 5 days before the due date.

This setting:

• Automates when rent charges appear
• Sends advance rent-due notifications
• Saves each message in the tenant’s message history
• Helps reduce late payments

Default number of days after move-in to begin calculating late fees

Example: 30

Late fees begin calculating 30 days after move-in. This applies only to the first rental period and is helpful for short-term rentals (daily, weekly, bi-weekly).

This helps automate the timing of fair late fees during the initial lease period.

Default late fee grace period (days)

Example: 5

• An automated notice is emailed to the tenant
• Weekly reminders are sent until resolved
• All communications are saved to the tenant’s message history

Automated Late Fee Amounts

These settings control how much is charged and ensure fees stay within defined limits.

Default principal late fee

Example: $30.00

A one-time late fee posts automatically after the grace period ends.

Default daily late fee

Example: $5.00

A daily fee posts automatically starting the day after the principal late fee.

Default maximum total monthly late fee

Example: $75.00

Late fees stop automatically once the monthly maximum is reached, preventing overcharging.

Invoice & Reserve Settings

Beginning invoice number

Example: 1

Sets the starting number for invoices.

Show reserve calculation on the properties and owners tab (Yes / No)

Displays reserve balances directly on property and owner pages.

Automating Owner Contributions (PM Accounts)

If you manage properties using a Rentec PM account, Accounting Defaults also help automate owner contribution tracking, ensuring funds are recorded accurately when owners cover expenses or repairs.

Owner contributions can be made by:

• Automatically transferring funds between properties during owner disbursements
• Manually recording owner contributions when needed
• Allowing owners to submit contributions through their portal (requires an active merchant account)

Default Accounting Categories

Default categories automatically assign categories to transactions, saving time and ensuring consistent reporting.

• Default rent product category: 120 Rent
• Default late fee product category: 130 Late Fee
• Default CAM product category: 140 Common Area Maintenance
• Default tenant payment category: 4000 Rental Income
• Default owner disbursement category: 8900 Owner Disbursement
• Default owner contribution category: 4110 Owner Contribution
• Default property manager payment category: 6100 Management Fees

If you or your accountant uses different categories, you can create custom ones to match your existing accounting structure. Learn more about Setting up Categories

Printing Preferences

Printing Preferences automate how checks, invoices, and receipts appear.

Check Printing Settings

• Format for printed checks
  • 3 Checks per page
  • 1 Check with 2 Vouchers
  • 1 Check with 1 Voucher
• Print payee address on checks (Yes / No)
• Adjust check-printer alignment
  • X: 0
  • Y: 0

Automated Messages

Customize messages that automatically print on invoices and receipts for all tenants to help set clear payment expectations. Customize messages that automatically print on invoices and receipts for all tenants.

Invoice message example:

As a friendly reminder, rent is due on the 1st of each month. To avoid late fees, please submit payment by the 5th. Visit your Tenant Portal for convenient online payment options.

Receipt message example:

Thank you for being a valued resident! From your Team at YOUR COMPANY NAME.

💡 Tip: You can also enable Automatic Email Notifications for rent charges, late notices, payments, credits, and work orders when adding tenants. Click here to learn more about  Automatic Email Notifications

Tips & Best Practices

• Accounting Defaults automatically apply to tenants added after defaults are set.

  If Accounting Defaults are changed, existing tenant settings can be adjusted individually, if needed, using the steps in Edit Tenants.

• Review defaults to ensure they align with:
  • Lease terms
  • Rental agreements
  • Company accounting procedures
• Automating accounting rules reduces errors and improves reporting consistency

Frequently Asked Questions

Q) Should I use strict accounting rules?

We recommend using Strict Accounting. It works seamlessly with both automated and manually entered transactions and helps prevent errors by requiring key information—such as a bank account—before a transaction is saved. This ensures accurate records and makes reconciliation easier. Learn more about Full Accounting with Rentec Direct. Learn more about Full Accounting with Rentec Direct.

Q) Can I automate late fees and still change them later?

Yes. You can update late fee automation at any time, but changes are not retroactive.

Q) Why use default categories?

They automate transaction categorization, saving time and ensuring consistent financial reports.