Rent receipt: What to include and how to create one for your small business

Published Thursday 20 November 2025

Table of contents

• What is a rent receipt?
• Why you should provide a rent receipt
• Create a rent receipt
• Provincial legal requirements
• Best practices for rent receipts
• Streamline your rental business with accounting software
• FAQs on rent receipts

Key takeaways

• Include essential information in every rent receipt such as tenant names, payment amount and method, property address, rental period covered, and a unique receipt number to ensure legal validity and proper record-keeping.

• Provide rent receipts for all payment types and amounts including full payments, partial payments, and late fees, as tenants have the right to request receipts regardless of payment method without being charged a fee.

• Automate your receipt creation process using accounting software or standardized templates to save time, maintain consistency across properties, and ensure professional documentation for all rental transactions.

• Retain copies of all rent receipts for at least six years as required by the Canada Revenue Agency, keeping organized digital or physical records to support tax compliance and provide legal protection during disputes.

What is a rent receipt?

A rent receipt is a document that confirms a tenant has paid their rent. Landlords or property managers issue these receipts as proof of payment.

You can deliver rent receipts in several ways:

• email (digital format)
• mail (paper format)
• hand delivery (paper or digital)
• Email (digital format)
• Mail (paper format)
• Hand delivery (paper or digital)

The receipt is typically provided once payment has been received and processed.

Legal requirements vary by province, but you must provide receipts at no charge when your tenant requests them.

Provincial examples:

• provide receipts for current or former tenants for any rent, security deposits, or arrears in Ontario
• provide receipts for all cash rent payments in British Columbia
• do not charge tenants fees for providing receipts in any province

Why you should provide a rent receipt

Rent receipts protect both parties by providing legal proof of payment. This documentation becomes crucial for cash transactions and dispute resolution.

Benefits for landlords:

• : Written record of rental income for tax purposes, which is essential for correctly calculating deductions. For example, if you rent out a portion of your home, you can deduct expenses for the whole building, like taxes and insurance, on a proportional basis.
• Legal protection: Evidence of payment history during disputes

Benefits for tenants:

• Payment proof: Protection against false non-payment claims
• Tax deductions: Documentation for potential rent-related tax claims
• Dispute resolution: Reference documents for rental disagreements

Create a rent receipt

Automating how you create receipts saves time and keeps your records consistent across all your rental properties.

Accounting software like Xero streamlines this process by automatically generating standardized receipts for each payment you receive.

Use a template

A template ensures your receipts are standardized and consistent. Besides accounting software, you can create a template using a word or spreadsheet program, and convert the finished receipt into a printable document that cannot be changed.

Include the right information

Include all essential information to make your receipts legally valid and easy to track.

Party details:

• Tenant name(s): Full legal names of all tenants
• Landlord/property manager: Full name and contact information

Payment details:

• Payment amount: Specific amount received
• Payment method: Cash, cheque, credit card, money order, etc.
• Payment date: When payment was received
• Late fees: Any additional charges applied

Property and period details:

• Property address: Complete rental unit address
• Rental period: Specific dates covered by the payment
• Outstanding balance: Any remaining amount owed
• Receipt number: Unique identifier for record-keeping and invoice linking

Provincial legal requirements

The core components of a rent receipt are similar across Canada, but specific rules vary by province. Check with your provincial or territorial residential tenancy board to meet your local requirements.

Best practices for rent receipts

Follow these best practices to keep accurate records and build positive relationships with your tenants.

Essential actions:

• double-check that all information matches the lease agreement
• provide receipts for full, partial, and late payments
• send receipts immediately after you process the payment
• keep digital or physical copies for your records, as the Canada Revenue Agency requires you to keep your records for six years from the end of the relevant tax year
• send annual payment summaries at the end of the lease

Streamline your rental business with accounting software

Manually creating and tracking rent receipts can take up your time, especially as you manage more properties or tenants. Using accounting software like Xero helps you automate the process, so every receipt is accurate, professional, and sent on time. You can create reusable templates, track payments automatically, and keep all your financial records organized in one place. This gives you more time to grow your rental business. Ready to simplify your rental management? Start a free trial today.

FAQs on rent receipts

Here are answers to some common questions about handling rent receipts.

Can tenants request rent receipts for any payment method?

Yes. Tenants can request a receipt regardless of how they paid, whether it was by cash, e-transfer, cheque, or another method. Providing a receipt is good practice for all transactions as it creates a clear payment history for both you and your tenant.

Do I need to provide receipts for partial rent payments?

Absolutely. You should issue a receipt for any amount of money received, whether it's a partial payment, a full payment, or a late fee. The receipt should clearly state the amount paid and the remaining balance owed to avoid any confusion or disputes.

What's the difference between digital and paper receipts legally?

In Canada, both digital (such as a PDF sent by email) and paper receipts are accepted as legal proof of payment. Make sure the receipt includes all required information and is easy for your tenant to access. Digital receipts are easy to store, send, and track.

How long should I keep copies of rent receipts?

The Canada Revenue Agency (CRA) requires you to keep financial records, including proof of income such as rent receipts, for six years from the end of the last tax year they relate to. Keeping organized digital copies can make this much easier.

Can I charge tenants for providing rent receipts?

No. In provinces where landlords are required to provide a receipt upon request, you cannot charge a fee for it. It is considered a basic part of the rental transaction and a tenant's right to have proof of their payment.