Property Manager | Paying Out Convenience Fees and Late Fees
The system was built on transparency so all income will first be posted on a property. However, below are suggestions on how to pay out collected fees (such as late fees, application fees, and credit card fees) to the property management.
Create an Expense Category
Before you begin, we suggest creating an expense category with a management fee class for this action so this item will show up later to pay out with ALL of your property management fees.
In your Rentec Direct account:
- Click Settings.
- From the Financial Settings choose Income & Expense Categories.
- Click the Add Category button.
- Enter the following:
- Description: Enter a description such as Late Fee Expense or Application Fee Expense, or Credit Card Fee Expense)
- Type: Expense (this is set to Expense as it will be a debit/expense from the Property)
- Class: Management Fees -- this class triggers the system to list this item on the Pay Manager tool.
- Reference #: Enter your own reference number or allow the system to Autofill.
- Leave the Schedule E Item default set: No
- Click the Post New Category button.
Post a Management Fee Expense to the Property
Property managers who retain fees will need to post an expense on the property IF they retain the fees.
Example: Tenant pays rent late so you receive rent + late fees. We suggest posting late fee income separate from rental income. When you post them separately (or in a split transaction with unique income categories, they will show on the property as two separate items. Then, you will post an expense on the property to pay out later when you pay out management fees.
In your Rentec Direct account:
- Click Properties.
- Chose the Property and click Post Expense.
- Enter the Amount.
- Leave the Bank and Tenant as None
- Choose the Expense Category you created for this type of transaction.
- Click Post Expense.
When you go to the
Pay Property Manager Screen you will now see your management fees, late fees, and any other convenience fees you choose to pay out with management fees.
Pro Tip: Be sure to set your expense account per property so your management fees show up correctly on the proper bank account for payout.
Additional Option
You may pay out these items as single checks/single expenses on the property tab if you do NOT want to pay them out in one lump sum with your management fees.