Understanding fund flows

Every payment you collect through Yorlet can be split between your own business and the owners of the properties you manage. Fund flows describe how that money moves: from a paid invoice into an owner’s balance, out again as fees you collect, and finally to the owner’s bank as a payout. Each owner account has its own ledger. Every movement of money is recorded as a balance transaction on that ledger, so an owner’s balance always reconciles to the transfers, collections, reserves and payouts behind it.

​

The flow of a rent payment

1. A tenant pays an invoice. Each line item on the invoice has a transfer behaviour that decides who receives the funds.
2. Yorlet creates a transfer for each line item and owner. The transfer creates an owner payment, which credits the owner’s balance. See Transfers.
3. Fees are collected. If the line item is rent and the unit has a management fee, Yorlet creates a collection that debits the fee from the owner and credits it to your platform account. See Charging owners.
4. Funds become available. Transfers funded by a card or bank payment sit in the owner’s pending balance for two business days. Funds from payments made outside Yorlet are available immediately. See Account balances.
5. The owner is paid out. A payout pays the available balance to the owner’s bank, on their schedule or when you create one. See Owner payouts.

​

Transfer behaviours

The transfer behaviour on an invoice line item, subscription item or price controls where the funds go when the invoice is paid. There are three behaviours: You set the transfer behaviour when you add a line item to an invoice or subscription in the Dashboard, and it is copied from the application when a tenancy is created. To make sure nobody forgets, you can require it on every invoice: in your invoice settings, turn on Make transfer behavior mandatory.

​

What moves an owner’s balance

​

Collecting fees

Collections are how you earn from the money you move. When you use the automatic transfer behaviour on a rent item, the unit’s management fee is deducted automatically. For example:

1. An invoice for £1,200 of rent is paid.
2. The unit’s management fee is 10%.
3. Yorlet transfers £1,200 to the owner of the unit and creates an owner payment on their account.
4. Yorlet creates a £120 collection against the owner’s balance for the management fee.
5. Your platform account is credited with £120.

The owner sees both the £1,200 payment and the £120 fee on their payout receipt. You can also charge owners for anything else, such as maintenance, insurance or service charges, and route the money to a supplier instead of your own account. See Charging owners.

​

Routing settings

Your routing settings control a few account-wide destinations:

• Non resident tax collections: choose the owner account that receives the tax you deduct from non-resident landlords. Leave it empty to route the tax to your platform account. See Tax reporting.
• Enable deposit routing: when a deposit is collected through Yorlet, transfer it to an owner account rather than leaving it on your platform. Deposits registered with an insured scheme are not transferred. See Deposit routing.
• Set destination as mandatory on account collections: require a destination to be chosen on every collection, so nothing is credited to your platform account by default.

​

Transfer events

Each step of a fund flow creates a record you can inspect:

​

Reversing and refunding

You can reverse a transfer to correct money that went to the wrong owner or for the wrong amount. Reversing a transfer refunds the owner payment and any fee collected on it. See Reversing a transfer. When you refund a payment collected through Yorlet Payments and choose to reverse the transfers, Yorlet reverses the related transfers to owners and refunds any collections made against them, so the owner’s balance and your fees are unwound together.