Screen Location... Setup menu.
Use this screen to set up a table containing the schedule of fee combinations you charge your landlords for the management of their property.
The schedule provides you with the flexibility to apply different charges to any landlord depending upon the circumstances.
You may wish to charge a lower rate to one landlord with many properties, or charge a different rate for a particular property or properties owned by the same landlord.
Any Fee Code may be applied to one or more landlord(s), or one or more property(ies).
Two fee rates must be set for each Fee Code entered, a Management fee and a Disbursement fee.
GST is added to the fee calculated.
The actual fee charged on tenant receipts and invoices charged through a property is the fee assigned to the property. An invoice charged direct to the landlord will be charged at the fee assigned to the landlord.
This schedule is NOT used for charging for property inspections. See Inspection Billing for more on charging for inspections.
Use one or two alphabetic or numeric identifying characters.
Assign the code A to your standard fee to place it first in the table, with a description of "Standard Rate". This will be used for the most common fee charged, as it is the fee offered first when setting up a landlord and property.
Make the last entry code Z with a Description of "No Fees and Casual" and with the fees set to zero. This will be used for your special landlord accounts and your casual rentals.
Enter a description of the rate being charged.
For fees other than the two mentioned above consider using a description like M = 8% D = 6% rather than Joe Brown or High Tower Apartments. It is more informative when looking at screen displays and reports.
Either the rate or the amount that will be deducted from all rent transactions that use this code.
Either the rate or the amount that will be deducted from the landlord's account for all non rent transactions that use this code.
When assigning codes leave gaps between codes so you can insert a new entry between two others.
You make your money by charging fees for the work you undertake in managing a rental property for a landlord. Self evident stuff that ! But you need to get it right, not miss fees you are entitled to, yet still have the flexibility to vary the rates charged to suit differing circumstances. The Aspect Property Manager provides this capability.
Two types of fees are associated with managed properties, Management fee and Disbursement fees.
The fees charged are calculated based on information set in the Fees Schedule table set up by you.
The system requires a minimum of one entry in the table. Because the first entry in the table is the fee offered when setting up a landlord you would make this first entry contain the normal, or standard, fees you would charge "Joe Average" landlord. The Clean Up step will have assigned a code of "A" and percentages of 10% Management Fee and 10% Disbursement Fee which should be edited to your rates say 8% Management Fee and 8% Disbursement Fee.
When rent is paid by the tenant, 8% plus GST will be deducted from that rent receipt and the balance credited to the landlord account, with the management fee and GST being credited to the Management Fee and GST control accounts.
When you process an invoice for repairs on the landlord's property(ies) a fee of 8% plus GST of the invoice value will be deducted from the landlord's account and credited to the Management Fee and GST control accounts. The landlord statement will show the full value of both the rent received and the invoice value. Shown separately will be the fees and GST charged on the rent and the invoice.
If you apply a reduced fee rate, perhaps when a landlord has two or more properties, make an entry in the fees table which reflects that lower rate. For those landlords who receive the lower rate, select that code in the Fees box on the Landlords screen, as the rate to apply to all the transactions on their account.
As well as setting the fees based on a percentage you can set a fixed rate for the fee. For example you could have an entry where the charge is 5% management fee on the rent collected, but a fixed charge of $2 on all disbursements.
You can use any combination of amounts, percentage, management or disbursement fee you like, e.g.
6% Management Fee, 4% Disbursement Fee
9% Management Fee, 0% Disbursement Fee
8% Management Fee, $5.50 Disbursement Fee
0% Management Fee, 0% Disbursement Fee ..... if you do not wish to charge any fees.
Most users will require a "no fees" entry, to apply to casual tenancies where no fee is charged on the Rent received and disbursements charges are not made. Code Z is an example of that.
You may also wish to set up a fee structure that relates only to one, or a group of, properties such as an apartment block. Just create an entry to suit and for those properties which receive the lower rate, select that code in the Fees box on the Properties screen, as the rate to apply to all the transactions on that property.
When setting up a new Landlord the system will use the first entry in the table. You may select a different Fee Code for a landlord or property to that offered. Now you see why the standard fee is assigned the code A which sorts to the first item in the table.
You must have at least one entry in the Fees Schedule table.
The first fee in the Fees Schedule should be the most common fee.
Management Fees are calculated and charged on rent.
Disbursement Fees are calculated on invoices.
The calculated fees may be overridden.
The Management Fee and Disbursement Fee on the property may be different to those charged at the landlord level.
Changing the percentage or amount for an existing Fee Code will apply the new rates to all future transactions or old transactions which are edited.
When assigning the code remember uppercase letters sort before lowercase, which are then followed by numbers.
Letting fees charged do not use the entries in this Fees Schedule and are normally recovered through the tenant receipt process. See Letting Fees topic for more information.
Initial Installation Step 3 - Setting up the Fees Schedule
Go to Setup Menu > Fees Schedule to display the Fee Schedule data entry screen.
The Cleanup program will have set up two entries in this table.
The entry with a description of "Standard Fee" should be edited to change the defaulted fees of 10% to the fees you most commonly charge.
The second has a description of "No Fees and Casual" which will be used for special situations and should be left in place.
Add other entries as required so the table contains one entry for every fee combination used to charge your landlords.
Read the topic above for the field usage, in particular the description.
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