To keep track of management fees, and for better reporting, we recommend utilizing the default category #6100 for management fees. If you want to add in multiple Management Fee categories for tracking multiple managers and or you wish to track placement fees, you will want to create a new expense category. To do this, click the Settings tab, then click Setup Categories. Add one new category for 'Placement Fees' and/or the alternate "Management Fee" category. Enter the type as 'Expense' and class as ‘Management Fees’.
Now Click the Properties tab, right click on the property you want to set management fees for, and choose 'Management Fees'.
Enter the management fees per your policies. First, select the category you want the fees to post to. Second, select the checkboxes to mark which fees you want to automatically apply to this property. Third, enter the fee amounts.
If your management fee structure is based on charged rent, the fee structure will need to be in place prior to moving in any tenants or the management fee will not calculate properly for the first tenant rent charges. If your management fee structure is based on a percentage of rent payments, you will need to have the fee in place prior to posting any rent payments or the management fee will not post. ----- Rentec Direct's program allows you the option to set management fees to automatically post as an expense to a property each month. This expense does NOT automatically assign the default expense bank account and does NOT automatically set the Property Manager as the payee on the transaction as most customers do not actually cut a check out of their operating account for this expense, it simply is withheld from the monthly income received that is disbursed to owners. If you pay out management fees to yourself or another person out of the expense account, follow this link for instructions.