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How to track rent payments and late fees: a simple tenant ledger for landlords

Most rent disputes come down to one question: what was owed, what was paid, and when. A clean tenant ledger answers it in seconds. Here's how to set one up, how to handle partial payments, and why you should check your local rules before you charge a single late fee.

Updated October 21, 2026 · by Tidy Landlord

Why a ledger beats a list of deposits

Your bank statement shows money coming in. It doesn't show what each tenant owed, which month a payment was for, or whether a fee was ever charged. A tenant ledger does. It's a running record for each tenancy with one line per charge and one line per payment, and a balance that tells you at any moment whether the tenant is paid up, ahead or behind.

What to record for every payment

The date you received it, not the date it was due
The amount, and how it was paid: e-transfer, ACH, cheque, cash or a payment app
Which charge it pays: this month's rent, last month's balance, a utility bill or a fee
A reference such as a cheque number or transfer confirmation
The running balance after the payment

Record charges the same way, with the due date, what it is and the amount. The balance is simply charges minus payments.

Partial and early payments

When a tenant pays part of the rent, record exactly what arrived and leave the rest as a balance. Don't round it off or wait until the full amount comes in. Decide, and write down, how you apply payments: most landlords apply money to the oldest unpaid charge first, so a payment never hides an older debt.

Early payments count too. For US returns, IRS Publication 527 says advance rent is included in rental income in the year you receive it, whatever period it covers. In Canada, the CRA's guide T4036 explains what to report as rental income on Form T776. Your ledger shows both the date received and the month it covers, so you have the answer either way.

Late fees: check the rules where your rental is

Late-fee rules are set by each state and province, and some cities add their own. Some places cap the fee, some require it to be in the written lease, and some don't allow a late-payment fee at all. A few examples show how different they are:

Texas: Property Code section 92.019 (Texas Property Code ch. 92) lets a landlord collect a late fee only if notice of the fee is in a written lease, the fee is reasonable, and rent has remained unpaid two full days after it was originally due. A fee is considered reasonable if it is no more than 12% of the rent for the period in a building with four units or fewer, or 10% in a larger building, or if it doesn't exceed the landlord's uncertain damages from the late payment. An initial fee plus a daily fee count together as one late fee.
British Columbia: the Residential Tenancy Regulation, section 7 (BC Residential Tenancy Regulation), allows an administration fee of no more than $25 for late payment of rent or a returned cheque, plus the bank's own service fee for a returned cheque, and only if the tenancy agreement provides for it.
Ontario: Regulation 516/06, section 17 (Ontario Reg. 516/06), lists the extra payments a landlord may collect. For a bounced payment it allows the bank's NSF charge and an administration charge of up to $20 for an NSF cheque. A late-payment fee is not on that list.

Outside these examples, look up your own state or provincial statute, or ask your local housing authority or tenancy board, before you put a late fee in a lease. Whatever the rule, record a fee as its own charge on its own line, never by quietly raising the rent amount.

A worked example

These figures are made up to show the method. Rent is $1,500, due on the 1st.

March 1: charge rent $1,500. Balance owing: $1,500.
March 3: the tenant sends $1,000. Balance owing: $500.
March 10: the tenant sends $500. Balance: $0.

Whether a late fee applies depends on the place. Under the Texas rule above, rent unpaid two full days after March 1 could carry a fee if the written lease gives notice of it; in a fourplex, a fee of up to 12% of $1,500, or $180, is considered reasonable. In British Columbia the most the landlord could charge is a $25 administration fee, and only if the tenancy agreement says so.

Patterns and receipts

A ledger also shows patterns. In Ontario, section 8.1 of Regulation 516/06 says persistent failure to pay rent on the date it is due includes paying more than seven days late on at least three occasions within any six-month period, so payment dates matter as much as amounts.

Give receipts, especially for cash. Texas section 92.011 requires a written receipt for a cash rent payment and an entry of the date and amount in the landlord's record book. BC's standard tenancy terms require a receipt for rent paid in cash. In Ontario, section 9 of Regulation 516/06 lists what a receipt must include: the rental unit address, the tenants' names, the amount and date of each payment and what it was for, the landlord's name and the landlord's or agent's signature. A ledger with those columns gives you most of a receipt already.

A monthly routine

On the due date, post the rent charge for every tenancy.
As money arrives, record each payment against the oldest unpaid charge.
A few days after the due date, look at every tenancy with a balance and follow up in writing.
At month end, match the ledger's total payments to your bank deposits.

Frequently asked questions

How do I keep track of rent payments?

Keep a tenant ledger: one line for each charge and each payment, with the date, amount, payment method, what it pays and a running balance. Match the total to your bank deposits each month.

Can a landlord charge a late fee for rent?

It depends on where the rental is. Texas allows a reasonable late fee if notice is in a written lease and rent is unpaid two full days after it was due. British Columbia allows an administration fee of up to $25 if the tenancy agreement provides for it. Ontario's list of allowed extra charges does not include a late-payment fee.

How should I record a partial rent payment?

Record exactly what you received on the date you received it and leave the rest as an open balance. Apply payments to the oldest unpaid charge first so older amounts don't get hidden.

Is advance rent taxable in the year I receive it?

For US returns, IRS Publication 527 says advance rent is included in rental income in the year you receive it, regardless of the period it covers. Canadian landlords should follow the CRA's guide T4036.

Sources

This guide is general information, not legal or tax advice. Landlord-tenant, human-rights and privacy rules differ by state, province and city and change over time. Check the official sources linked above and the rules where your rental is, and consult a lawyer or your local housing authority if you're unsure.

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