The rule used to apply a received payment across open rent, fees, deposits, utilities, or other ledger charges.
What payment allocation means in practice
A consistent allocation policy keeps balances explainable and can affect notices, reporting, and compliance. The lease, payment memo, software settings, and local law may all matter.
Example
A partial payment is posted using the property’s documented rule, preserving a clear trail of which charges remain open.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.