Property Management C of Acts set up
RayKeen
Member Posts: 1
we collect rent on behalf of owners, monies go into Trust Account, owners are charges % of rents received.
how do people set up their invoices to owners for the management fee, and how do you move monies from the Trust account to owner payout
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Hi @RayKeen, that is a very good question. To answer this, could you please clarify a couple of points here for me? From my understanding, it looks like you are collecting rent from tenants on behalf of the Property Owners. What do you mean by "owners are charged % of rents received"? Is this a management fee being charged to the individual tenants? Is the overall objective here to invoice the tenants for rent plus a management fee, collect the payments in the Trust Account and then transfer the funds from the Trust Account to the Property Owners? Please let me know, I'd be happy to help!
Hi Myron... I see there was response, but we do the same / similar. Prop Management fees are typically charged to the property owner... This is either a percent of rent or a fixed fee.
So if we collect $1500, and the management contract states 8%, then we "distribute" 1500 - 120, or 1380.
Other contracts may have a set monthly fee o say $150... so we would deduct that from the 1500 collected.
I both cases this is revenue to us (and of course an expense to the owner).
I am also needing help with the exact same situation.
@davenel @BradeyB let me see if I can lay out a way for you to handle this.
In the Chart of Accounts, set up a liability account called "Due to Owner" or something similar.
When a customer pays by Wave, you will add an expense transaction in this liability account (Transactions page > Add an Expense > Account: "Due to Owner) for the amount owed to the owner (their share of the rental income). It will be categorised as "Refund for Income," then you select the income account in which the amount was received through the invoice.
Let me know if you have any further questions on this!
Hello, I am trying to set this up as well but I see that this was from December 2019. Has there been any update on how to set this up? As for our account when a tenant pays rent it is deposited into our account, we then keep the management fee as income but the remaining amount of the deposit then gets transferred to the property owner. How would you suggest setting up those activities?