There is now an option to create multiple management fee settings for a single property. You can opt for this option if:
– There is a new owner to the property and he wants to change the management fee
– You want to change the cycle date
– You want to change the management fee itself and use it for the succeeding months
– Want to retain the previous rent & disbursement data report
Note: You can only edit the Most Recent management fee settings
If there are multiple management fee settings for a property, a Note saying: “Selected property is using property level settings. Multiple settings found for this property” will show
At the bottom of the page, you can see All the Management Fee Settings for the property, including the Most Recent management fee settings
Follow the steps below to create multiple management fee settings for a single property:
- Go to Settings > Management Fee Settings.
- Choose the Property > Add New Settings > Add the Title and select the Starting from Month (you cannot edit the Starting from Month once Submitted)
- Note: Once a new management fee setting is created, previous settings will be non-editable. The only current setting can be updated.
- In this example, we are selecting March 2022 with the Title of 3rd mgmt settings.
- Once done, click ‘Submit.’
- After submitting, you can still edit the “Management fee calculation” (we are changing the current fee of $180, 7% of collected rental income, to $200 flat fee per property) (At the bottom, you can see all the changes that we are making, make sure to click ‘Save Settings Information’ to update the settings)
- Now you are wondering, what would happen to the property’s previous report. Will it be messed up since we have a new management fee and monthly cycle date?
- In the Rent & Disbursement report, you will notice in this example that the management fee is still $180 for March because the Starting month covers the current period, and the management fee invoice has already been created.
- But for April 5th – May 4th, the $200 flat fee per property will reflect in the report.
- Here’s an example scenario:
- An owner sold their property and the new owner wants to change the monthly cycle start date cycle to every 5th of the month.
- Ex For the past owner, all the reports were created for the 6th of every month to the 4th of the month – Feb 6th – March 4th (all the previous reports and management fee invoices were being created and based on this period)
- Once you change and create a new monthly cycle date, this covers all the succeeding months.
- Now, remember that the new owner wants to change it to every 5th of the month – once the new management fee settings are set up, and you updated the monthly cycle start date to the 5th of every month, the report will be created the next time in this period: March 6th 2021 – April 4th 2022, April 5th – May 4th
Things to remember:
If you are changing the cycle start date:
Your last R&D statement might not align properly for the following reasons:
– Your rental income deposit date is out of the new cycle start date
– Your tenant invoice income is out of the new cycle start date
– Your expenses, bills or owner invoices fall beyond the new ‘Cycle start date’
How to resolve this?
This issue will only happen for the last R&D report before the new cycle start date.
– If your mgmt fee is set to use ‘Recorded Payment Date’, You might consider deleting the payment for the rental invoices and re-record with a date that falls within the new period range
– If your mgmt fee is set to use ‘Invoice Date,’ You might consider deleting the invoices and recreate with an invoice due date that falls within the new period range
– Update Expense Items to fall within the new cycle start date
– Recreate bill items
– Recreate owner invoices
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