Management Fee Profile

See Also Collecting Management Fees First Months Rent

Management Fee Adjustments Management Fees-Overview

This profile defines the various fee structures. If you have only one management fee rate then only one profile is required. A management fee is associated with each unit. An Additional Management Fee can be defined for a tenant’s lease.

If you are a non-fee based manager, set up a profile with a Record ID of No Fee. The only entry required in the profile is the NSF Fees field. Select the appropriate Charge Code and mark the checkbox Pay to Owner. Also set the Owner Percentage of Late Fees to 100% and mark the Invoice Discounts to Owner checkbox.

Each profile must have a Record ID consisting of an ID (short description) field and a Long Description field which uniquely identifies that profile record.

The management fee will be taken on any charge using the Charge Code entered in the Tenant Profile, Lease tab, Rent Charge field. Management fees can also be taken on any charge using a Charge Code that has been set up as Subject to Management Fees.

The fee to be charged is determined at the time rents are charged. Fees can be taken based on the rent collected, the actual rent which is defined in the Tenant Profile, the market rent which is defined in the Unit Profile, or be a fixed amount - or any combination thereof.

The total fee amount on Tenant Payments and Not on Tenant Payments rents is the sum of calculated fees for those fields that are filled in. Thus the total fee could be a % of the collected rent plus a % of the actual rent plus a % of the market rent plus a fixed dollar amount. Similarly the total management fee taken when a unit is vacant could be a fixed amount plus a % of market rent as defined in the Unit Profile.

Management fees are deducted from the ledger balance and added to the management group balance:

•	At the time the rent charge is paid if the management fee profile structure is set for Management Fee on Tenant Payment

•	At the time the Management Fee function is run in AR, Scheduled Receivables for those fees that are set for Management Fee Not on Tenant Payment and Management Fee when Vacant.

Management fees can be charged to the ledger when the rent is received or when the Management Fees NOT on Tenant Payment function is run (or at both times).

The account codes used for the management fee transactions are set in the Posting Table.

Management Fee on Tenant Payment

When a tenant payment is processed this percentage of the amount recorded (that is subject to management fees based on the charge code) will be deducted from the owner/property ledger balance and added to the management group ledger balance. The account codes used for these transactions are set in the Posting Table.

When the rent charge is posted it creates a payable in the owner/property ledger and a receivable in the management group ledger. The fee amount is determined at the time rent is charged even though it is not deducted from the ledger until rent payment is received. The management fee amount is an owner/property payable due to the management group. The payable amount is reduced as the rent is paid off and the fee is paid to the management group.

Percent of Collected Rent

This percentage of the rent receipts is deducted from the owner/property ledger and given to the management group when rent receipts are posted. The field accomodates up to four decimal places. If the fee is a fixed amount taken at the time rent is paid, figure out the percentage of rent that will generate the amount [(fee / rent) x 100].

Fixed Management Fee taken when rent is paid

If the fee is a fixed amount taken at the time rent is paid, figure out the percentage of rent that will generate the amount [(fee / rent) x 100].

Management Fee Not on Tenant Payment

The management fees set up here are taken when the AR, Scheduled Receivables, Management Fees NOT on Tenant Payment function is run. This fee structure can be in lieu of or in addition to management fees on collected rent. The amount or percentage entered will be deducted from the ledger and given to the management group when the Management Fees NOT on Tenant Payment function is run.

Fixed Dollar Amount

The amount entered here is deducted from the owner ledger when the Management Fees NOT on Tenant Payment function is run.

Percent of Market Rent

Enter a percent (up to four decimal places) of the market rent (defined in the Unit Profile) that you wish taken when Charge Management Fees is run.

Percent of Actual Rent

Enter a percent (up to four decimal places) of the actual rent (defined in the Tenant Profile) that you wish taken when Charge Management Fees is run.

Management Fee When Vacant

The management fees set up here are taken on vacant units when the Management Fees NOT on Tenant Payment function is run. The amount or percentage entered below will be deducted from the owner’s ledger and given to the management group.

Fixed Dollar Amount

Enter the dollar amount of the management fee taken when a unit is vacant.

Percent of Market Rent

Enter the percent of the market rent taken when a unit is vacant.

Leasing Fee

Percent of First Month’s Rent

Enter the percent of the first month’s rent that is taken as a leasing fee. The leasing fee can be taken through Scheduled Receivables, Management Fees if the Lease Start Date is in the same month as the Scheduled Thru date.

Replaces Management Fee

Mark this checkbox if you do not want to take a management fee on the first month’s rent.

Alternate ways of processing the leasing fee are to use the Prorated Rent function or post a journal transfer from the owner/property ledger to the management group ledger.

Rent charged in AR, Scheduled Receivables, Rent is considered to be First Month’s Rent when the Lease Start Date in the Tenant Proflle is prior to the Scheduled Thru date and after the Next Scheduled Date in the tenant profile.

Caution: Do not change the Lease Start date when you get a renewal of a lease unless you take no management fee on the rent charged in the first month of the renewal.

Other Fees

Owner Percentage of Late Fee

This percentage of the late fee will be credited to the owner’s ledger when late fees are collected.

Note: If the owner receives none of the late fee his ledger will not show any late fee transactions.

Invoice Discounts to Owner

If you receive discounts from a vendor you can choose to give the discount to the owner or the management group. Check this box if the owner receives invoice discounts. In either case, the check will be written for the discounted amount and the owner ledger will be debited the full invoice amount. If you choose to give the discount to the owner, the discount amount will be credited back to him. If you choose to give the Management Group the discount, the management group ledger will be credited with the discount amount.

NSF Fees

NSF Charge

Enter the charge code to use when posting an NSF check charge to the tenant’s account. The actual NSF charges are entered in Setup, Account Codes when you set up the bank account information.

Pay to Owner

Mark this checkbox if the above fee should be paid to the owner/property ledger rather than the Management Group.

Note: If the owner receives none of the NSF fee his ledger will not show any NSF fee transactions.