Automated Management Fees
Your property management software was designed to save you valuable time by automating management fees.
Establish Management Fee Rates
Your management fees can be set so that they are reflected on both the Property and Owner ledger accurately. You've likely already set your management fees when you added your properties in the software. In the event you inadvertently left off management fees or need to edit, follow the below instructions.
In your Rentec Direct account:
- Click Properties.
- Right-click on a Property and choose Management Fees.
- Enter the management fee options per your management agreement and policies.
- First, select the category you want the fees to post to.
- Second, select the checkboxes to mark which fees you want to automatically apply to this property.
- Third, enter the fee amounts.
Tip: To keep track of management fees, and for better reporting, we recommend utilizing the default category #6100 for management fees. If you want to add in multiple Management Fee categories for tracking multiple managers and or you wish to track placement fees, you will want to create a new Expense Category with a Management Fee Class.
More information can be found here: Setting Up Categories | Chart of Accounts
- Click Save Changes.
System Note: If your management fee structure is based on charged rent, the fee structure will need to be in place prior to moving in any tenants or the management fee will not calculate properly for the first tenant rent charges. If your management fee structure is based on a percentage of rent payments, you will need to have the fee in place prior to posting any rent payments or the management fee will not post.
Important Note: If you update a move-in date for a tenant and select Yes to update accounting, AND your management fee is based on Percentage of Charged Rent, you will see additional management fees populate to the property ledger.
Rentec Direct's program allows you the option to set management fees to automatically post as an expense to a property each month. This expense does NOT automatically assign the default expense bank account and does NOT automatically set the Property Manager as the payee on the transaction as most customers do not actually cut a check out of their operating account for this expense, it simply is withheld from the monthly income received that is disbursed to owners. If you pay out management fees to yourself or another person out of the expense account, you will use the Pay Property Manager Tool available by clicking Banking and using the drop-down menu for a listed bank account.
More information can be found here: Pay Yourself Property Management Fees