How to Set Up and Add Surcharges to Tenant Invoices

Easily schedule a single consolidated invoice for tenant billing.

In just two steps, you can start providing your tenants with a single consolidated invoice that includes rent or HOA dues, plus any other applicable charges, on the same day.

This article reviews the following information. Click on a jumplink to jump to that section

1. Add Surcharge Options  (utilities, taxes, or fees imposed by the state or city, pet rent)
2. Link surcharges to rent
3. Multiple Variations for clients that may have tenants with variations of billing options (pet rent, sales tax, additional structure or space)
4. Frequently Asked Questions (FAQs)

Pro Tip: Before you create a new surcharge, please speak with your accountant to verify whether they have a preferred reference or category number for each new surcharge to ensure consistent accounting.

Step 1: Add Surcharge Options to Your Software

Create individual surcharges for various fees that you use (state tax, pet fee, etc.)

In your Rentec Direct account: 

1. Click on Settings
2. Under Financial, click on Product & Services
3. Click the +Add Product button
4. Add a description (utilities, pet rent, tax, etc) and select the class. If the class is not listed, choose Other.
5. You can enter the Reference Number provided by your accountant, and uncheck Auto Number, or leave it checked to allow the software to create one for you.
6. Click on Save New Product
7. Repeat Steps 3-5 to add any additional surcharges that may be applied to tenants with their rent cycle.

Step 2: Link Surcharges to Rent

Once surcharges have been linked to rent, the category can be selected when moving in a tenant or posting a recurring charge to generate an invoice that bills automatically.

In your Rentec Direct account: 

1. Click on Settings
2. Under Financial, click on Product & Services
3. If all tenants will have rent plus one fee, such as taxes, click on the paper/pencil to edit the Rent or HOA product category.
4. Click on +Add Surcharge and select the surcharge (example sales tax)
5. Enter the Amount and whether it's a fixed fee or a percentage of their rent (up to 10 digits)
6. Click on Save Changes

Multiple Variations

If there are several potential combinations of charges, you will need to create new Rent Charge products to link the surcharges to:

• Rent plus sales tax, plus one monthly pet rent
• Rent plus sales tax, plus two monthly pet rent, plus garage

In your Rentec Direct account:

1. Click on Settings
2. Under Financial settings, choose Products & Services
3. Click on +Add Product
4. Add a Description for your product or service (example: Rent plus sales tax, plus one pet rent)
5. Use the dropdown to select a Class for the monthly primary charge (Rent or HOA)
6. Enter your preferred Reference Number or allow the system to AutoNumber
7. Click on Save New Product
8. Repeat steps 3-7 as needed for the different potential variations and add surcharges accordingly.

Frequently Asked Questions (FAQ's)

Why use invoice billing?

• Allows all monthly charges to post at the same time on one invoice  
• Simplifies compliance with itemized charge requirements
• 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 before the due date, based on your system settings. 
• Automatically numbers invoices

Does this work for commercial billing?

• Yes, tenants of commercial properties, or those with Common Area Maintenance (CAM) or Ratio Utility Billing System (RUBS) charges, these charges will be set up as surcharges and then applied as CAM to individual tenants for invoicing. Learn more: Common Area Maintenance | CAM Charges