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sometimes tenants pay after they stay thats why you have to make invoices for overdue rent what happens at the end of each month if the tenant has not yet paid well the tenant still owes the money at the end of the month whether they paid or not and the landlord still earned the money because the tenant stayed there whether they paid or not you still make an invoice at the end of each month to reflect both of those changes however in this particular case even though rental income is going up because the landlord earned it you would not I repeat you would not take the money from unearned rent an unearned rent would not decrease if you did it this way unearned rent would not be correct remember unearned rent has to represent the balance of all the prepaid rent that the tenants have not yet used if someone is paying late it means their money never went into unearned rent in the first place and therefore you should not be taking it out of the unearned rent ac
