How to Set Up and Add Surcharges to Tenant Invoices
Adding Surcharges allows you to give your tenants one comprehensive consolidated monthly invoice instead of individual line-item charges. Not only does that make it easier for your tenants to know what has been charged, but also allows them to see the additional charges on the same day the rent charge is posted.
Note: For commercial tenants, any current or new CAM (or RUBS) charges will automatically be included in the comprehensive invoice bundle without additional setup. More information to setup CAM charges can be found here: Common Area Maintenance | CAM Charges
Overview of the Surcharge feature:
- Saves you time by eliminating the need to create individual tenant charges each time a tenant moves into a property.
- Simplifies compliance with state tax regulations, such as Arizona, that require posting a tax on rent.
- Consolidates and notifies the tenant of all charges such as storage, parking, pet fees, (and any additional services you’d like to post to a tenant invoice/ledger) on or prior to the due date based on your system settings.
- The printed tenant invoice lists out the different invoice Surcharges.
- The printed tenant statement groups all the items in the invoice.
- The Tenant portal view shows both the invoice bundle and the invoice details.
- Automated invoice numbering is included.
Adding Surcharges allows you to give your tenants one comprehensive consolidated monthly invoice instead of individual line-items. Not only does that make it easier for your tenants to know what has been charged, but also allows them to see the additional charges on the same day the rent charge is posted. Follow along below for general instructions for creating and using Surcharges.
How to Set Up Surcharges
Setting up your Surcharge categories is the first step to creating an invoice package and is very simple with these instructions.
Note: The example below shows you how to add Surcharges to your existing Rent Product; however, you can add Surcharges to any Product or you can set up a second Rent Product and add the Surcharges to that instead. More information on creating a product can be found here: Customize and Add Other Tenant Charges
Step 1: Add one or more surcharges
Setting up your Surcharge categories is the first step to creating an invoice package and very simple with these instructions.
In your Rentec Direct account:
- Click Settings
- Under the Financial section, choose Product & Services
- Click the +Add Product button
- Add a description and set the class to Other
- Click the Save New Product button when finished and you'll be taken back to the Products & Services page
- Repeat Steps 3-5 to add any additional surcharges
Step 2: Add Surcharges to your Rent Product
Now follow these steps to add new surcharges to your Rent Product.
In your Rentec Direct account:
- Again, visit Settings, Product & Services
- Edit the Rent product by clicking the paper/pencil icon and add the new Surcharge from the drop-down options
- From the drop-down menu, choose between percentage (up to 10 digits) or a fixed fee
- Click Save Changes when finished
- Repeat steps 2-4 for any additional Products that you want to have corresponding Surcharges attached.
- For new tenants, Surcharges are applied to the recurring invoice package based on the Rent Charge product chosen when you place a tenant in a property (move-in).
- For current tenants, you'll need to edit Recurring Transaction to apply a new Rent Charge with corresponding Surcharges.
Information on how to edit Recurring Transactions can be found here: Recurring Transactions
View of ledger invoice link
View of invoice details
Note: There may be times when some tenants have varying surchages, such as those with pet fees. In this situation, you will want to create a new Rent or HOA Product with a description such as Rent + pet fee and add the appropriate surcharge. When tenants are placed into a property, you would simply select the product and surcharge for that tenant.