Lump-sum leases: bhogya, otti and jeonse
Some tenants pay one large sum instead of rent and get it back at the end. The sum is held as a deposit. It can come in parts and is returned at the end. You are reminded 90, 30 and 7 days before it falls due.
PLANSEvery plan
Why it matters
In parts of India and in Korea many homes are let for one large sum instead of rent. The landlord must pay it all back on the last day. The money often comes in parts, sits in the owner's account, and is easily mistaken for income. When the end date arrives the cash is not ready and the tenant cannot move. SmartMy Lease holds the sum as a deposit you owe back, records each part as it arrives. It reminds you 90, 30 and 7 days before it falls due. One report shows every sum still owed back and when.
The problem it solves
- A bhogya or otti lease runs on a large sum that the landlord must repay, but the books treat it like rent or forget it.
- The sum came in three parts by bank transfer and cash, and nobody can say how much is held today.
- The return date arrives and the money is not ready.
- The owner cannot say at a glance how much is owed back to tenants across all units.
How it works
- On the lease choose the type Lump-Sum Lease and enter the Lease Amount. Leave the rent at 0, or enter the small rent you agreed.
- Return By is the lease end unless you give another day.
- Confirm the lease. A lump-sum lease may be confirmed without rent.
- Press Take the Lease Amount. A deposit marked as the lease amount is made for the full sum.
- Record the money as it comes, in one payment or in parts, on that deposit. It is held on your deposit account, not booked as income.
- 90, 30 and 7 days before Return By, the person in charge of the lease gets a to-do to arrange the money.
- At the end, return the sum in full or less agreed deductions, with the same settlement as any deposit.
Everything it does
On the lease
- Lease type Lump-Sum Lease
- Lease Amount: the sum paid for the term and returned at the end
- Return By: the lease end when empty
- Rent: 0, or a small rent billed on the usual schedule
- Take the Lease Amount button; it opens the held amount once it exists
The amount held
- A deposit marked Lease Amount, with the amount asked and the amount held
- Taken, topped up, used or refunded; every movement has its payment or entry
- Held on the Entity's deposit account (a liability)
- Taken in parts: each part is a movement on the same deposit
Reminders
- To-dos 90, 30 and 7 days before Return By to the lease's person in charge
- Each reminder goes once; a daily job checks
Report
- Reporting > Leases and Rent > Lease Amounts Held: each lease amount still held, the tenant, the amount and the day it is to be returned, with a total
Who uses it
Owner or landlordSees how much is owed back to tenants and when.
Lease userWrites the lease, takes the amount in parts and returns it at the end.
AccountsSees the sum on the deposit account, never as rent income.
Where you use it
- Web: Lease > Leasing > Leases > Leases (Lump-Sum Lease type), Lease > Reporting > Leases and Rent > Lease Amounts Held
What you control
Settings
- Return By: the lease end unless you give another day
- Reminder days: 90, 30 and 7 days before (fixed in the code)
- Deposit account: set per Entity in the settings
Notifications
- To-do reminders 90, 30 and 7 days before Return By, to the person in charge of the lease. (inside the web app; no message to the tenant)
Questions
What is a lump-sum lease?
The tenant pays a large sum at the start instead of monthly rent, or with a small rent. They get it back in full at the end. It is called bhogya in Karnataka, otti or lease in Tamil Nadu and Kerala, and jeonse in Korea.Is the lump sum counted as income?
No. It is held on the deposit account, which is a liability, because you owe it back. Only a small agreed rent, if any, is billed as rent.Can the tenant pay it in parts?
Yes. Take the Lease Amount makes one held amount for the full sum. Record each part as it comes; the amount held shows what has arrived.How do we avoid missing the return date?
The person in charge of the lease gets a to-do 90, 30 and 7 days before Return By. Lease Amounts Held lists every sum still owed back, with its date.Can we keep part of it for damage?
Yes. At the end the amount is settled like a deposit: agreed deductions are kept and the rest is refunded.Related features
LEASES AND RENTLeases with joint tenants, guarantors and several unitsA lease holds the tenant, joint tenants, occupants, guarantors, one or more units, the term, the rent and how it is paid. Confirm it and the rent schedule, the deposit and the unit statuses follow.CHECKS, DEPOSITS AND REPAIRSDeposits, deductions and settlementThe deposit is held on a liability account, taken in one go or in parts. At move-out, deductions are proposed from the check. The tenant agrees or disputes each line online. Settle Deposit keeps what is agreed and refunds the rest.CHECKS, DEPOSITS AND REPAIRSMove-in, move-out and inspection checks with photos and signaturesWalk the unit at move-in, move-out and in between with a check. Check points are cards answered with one tap. The check takes photos, meter readings, the item list, keys and damage. Your staff sign first and the tenant signs last. The tenant gets the PDF; new damage at move-out becomes proposed deposit deductions.LEASES AND RENTRent schedule in advance or arrears, with rent-free monthsA confirmed lease bills itself from a schedule: monthly, quarterly, half-yearly or yearly, in advance or in arrears. Part periods go by the calendar, and stepped rents, rent-free periods and holdover worked in.
See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.