See Also Management Fee Overview First Months Rent
Management Fee Adjustments Printing Check for Management Fees
How to PDF documents:
Management Fee Profile #392
Collecting and Adjusting Management Fees #220
Pay Company for Management Fees #212
Management fees are deducted from the owner balance and added to the management group balance:
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At the time rent is paid if the management fee profile structure is set for Management Fee on Tenant Payment.
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At the time the Management Fee function is run in AR, Scheduled Receivables for those fees that are set for Management Fee Not on a Tenant Payment and Management Fee when Vacant.
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At the time of posting when a fee amount is entered in <<AR, ProRated Rent>>.
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At the time <<GL, Scheduled Journal Entries, Reconcile Management Fees>> is run.
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Management fees taken at the time rent is paid are posted as a payable to the owner/property ledger and a receivable to the management group ledger when rent is charged and shown as such in the General Ledger history. Thus if you decide to change a management fee after rents are charged but before the rent is received, you must void the rent charge and re-enter it again after changing the management fee profile. If you have changed the management fee profile after rents are received and the payment has been put on a deposit slip, follow the procedure for Payment Recorded in Error. At the receipt screen pay off a new charge of rent instead of the current charge. After posting, go to AR, Tenant History and void the unpaid rent charge. As an alternative, you can use the procedure for Adjusting Management Fees.
Management fees taken on other than tenant payments are deducted from the owner/property ledger and added to the management group ledger upon posting. The function looks at the lease start date to determine when to begin taking fees. If you decide to change the management fee after posting, you can use the procedure for Adjusting Management Fees.
Management fees are defined in the Management Fee profile and associated with a unit in the Unit Profile. The fee choices are comprehensive allowing virtually any combination of fees to be structured. Fees can be any combination of % of actual rent, % of market rent, and a fixed amount. All fees when taken are credited to the appropriate management group ledger.
In certain circumstances modified management fees - in addition to those defined in the unit profile - may be appropriate because of the lease term or other circumstances. Since these additional fees are lease specific they are defined in the tenant profile under Additional Management Fee. The percentage entered in that field will be added to the unit defined fee when rents are charged.
An example would be when the fee is based on the length of the lease. The long term fee may be 10% while a lease of less than six months may be 15%. Rather than change the management fee in the Unit Profile from 10% to 15%, you could indicate an additional fee of 5% for that tenant in the Tenant Profile.
The fees collected by the management group must periodically be given to the parent company. This is done by writing a check from the Single Check function, choosing the management group as the Bill To and the parent company as the Payee. See Printing Check for Management Fees.
Management fees may also be taken as Recurring Checks. When taken in this manner, the fees do not flow through the Management Group ledger and will not show on an Income report or a Revenue & Expense report for the management group.
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