How to apply management fees

This article is linked to understanding financials

How do you want to remit (present your statement) to an owner

  • By owner – This will include transactions across the whole portfolio on one statement
  • By property – This is used where an owner own property and all underlying units and wants a statement by property
  • By unit – This will include all transactions on a unit

This is linked to th article how to set up you remittance preference

Management fees are either applied:

  1. On rent received
  2. On rent charged
  3. As a fixed amount

Management fees can be applied as:

  • Recurring transactions (in most cases)
  • One-off transactions

* Management fees will not be applied to any rent where direct rent is used as the rent collection type.

Management fees can be applied at

  1. Property level
  2. Unit level
  3. Tenancy level

Please note that you need to choose how you want to remit so you can apply the managemnt fee at the right level. For example if you remit by individual unit then you should apply your management fee at unit level and NOT property level.

Property level

If your running a multi-unit property to save time simply add the management fee to the property and not the tenancy. Go to property>recurring>add

What’s important here is the tick box (second image) At remittance.  This will only, of course, apply to fees that are linked to rent received which is the majority of cases

The advantage if fees are applied at this level and taken at the point of remittance are

  1. Less crowded owner statement. The statement only shows rent
  2. More control when remitting as the fees will only be applied to rents that are ticked
  3. You only need to apply the management fees once not every time you add a tenancy (see Tenancy level below)

 

 

Step 1 : Select Property Owner and then use the drop-down to select which type of charge you want

Step 2: Select the ‘Starting on’ date, which is when the invoice will be raised and the transaction will be generated on the statement. Then select the frequency at which it will be generated from the drop-down titled ‘Repeating’. The section ‘For the period, To’ will indicate the period of time that this charge is related to. The ending will activate an end date for this charge.

 

 

Step 3: Alternatively, you can select ‘At Remittance’, which will generate it all at the remittance level.

 

Step 4: Then select the transaction type, add a description and an amount. If you would like to add an expected payment date this will dictate when the transaction will show as overdue.

 

Step 5: Click save recurring charge.

 

 

Unit level

The same applies here as above and is used where the owner is at a unit level only

Tenancy level

The fee is applied to page 4 of the add tenancy screen and can be

1 One-off transaction as seen on the top (Transaction details)

2. Recurring transaction as seen in the second section (Property owner recurring)

The disadvantage of this level is that it must be applied every time a tenancy is added

 

If you need to add it retrospectively after creating it at tenancy because you forgot to do it or need to make a change level  go to tenancy>recurring

* Please note to correct an error edit the first recurring to off and recreate a new recurring

**Please note that any rents already created will not have management fees added retrospectively. To handle already created rents go to tenancy>statement and add a single transaction payable by the owner for these created rents

 

 

 

 

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