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Bad Debt Apartment


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Bad Debt Apartment. When rent is deemed uncollectible, it appears as a “bad debt expense” on the income statement. In multifamily property management, bad debt refers to tenant debts like overdue rent and unpaid fees that are unlikely to be collected.

Adjusting entry for bad debt expense Financial
Adjusting entry for bad debt expense Financial from financialfalconet.com

In multifamily property management, bad debt refers to tenant debts like overdue rent and unpaid fees that are unlikely to be collected. When you have technology in place to manage the process, you can effectively administer payment plans and increase your bad debt. A bad debt is the amount owed by a debtor to a creditor which is unlikely to be paid, or the amount of uncollected money that a former tenant owes after moving out.

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Adjusting entry for bad debt expense Financial

When you have technology in place to manage the process, you can effectively administer payment plans and increase your bad debt. In real estate, bad debt refers to amounts owed that are deemed uncollectible, translating to various forms of lost revenue. In multifamily property management, bad debt refers to tenant debts like overdue rent and unpaid fees that are unlikely to be collected. When rent is deemed uncollectible, it appears as a “bad debt expense” on the income statement.

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