For fee-based management companies, understanding your management fee calculations is crucial. With each property that you manage, you have a specific structure of management fees that you collect. Perhaps you collect a flat fee per rental unit managed, or collect a percentage of specific types of income like rent, late fees, etc. This structure can be entered in Rent Manager to calculate and collect fees. Recently, we introduced a more flexible and streamlined way to calculate Management Fees, known as the Standard Method*. This new method allows you to post management fees as often as you like, with no monthly constraints.
How It Works
This new approach enables Rent Manager users to set up a fee structure against particular charge types. Here’s a breakdown of how it works:
- You may collect 6% of any rent charge that gets paid or 100% of any paid late fee. When you post management fees, Rent Manager applies fees to any payment transaction that was allocated toward your designated charge types.
- Rather than examine GL activity over a date range, we instead look for allocated payments without management fees assessed to them. Someone backdates a payment? That’s no problem. If it was applied to a charge type that you collect fees on, Rent Manager will collect that fee the next time you post.
- The Standard Method allows for more transparency when it comes to collection. You can click the details of a charge or payment and see if a management fee was assessed. It will also tell you how much was collected for that tenant’s payment as well as whether that fee was a pass thru CPT.
Your Management Fees, Your Way
Rent Manager will never require you to change methods; however, we will provide you with the tools to do so if you choose. The Standard Method offers more versatility and ease when calculating fees. The former set up is not going anywhere, though, and is now referred to as the Advanced Method*.
The Advanced Method is used when your fee structure goes beyond the basics. Among other more expanded capabilities, the Advanced Method calculates fees against the activity of specific general ledger accounts over a fixed date range.
You can convert to a different method at any time. By simply clicking either Convert to Standard or Convert to Advanced* on the Fees Setup tab. Doing so initiates a wizard that will help you transition to your desired setup.
Expand Your Knowledge on the New Management Fees Setup
These fee changes were part of the 12.720 Rent Manager Release*. This release was full of feature enhancements and improvements, and we don’t want you to miss the chance to further tailor Rent Manager to your exact needs. View the 12.720 Release Notes to learn all about the new management fee setup and other beneficial new Rent Manager capabilities.
Even more resources that detail the new Standard setup are available in the Rent Manager Help File and Rent Manager University. Each module is full of short videos, knowledge assessments, and examples of how to make the most of this new resource. Search your RMU course catalog for the following classes:
- Standard Management Fees Setup
- Posting Standard Management Fees
- Converting to Standard Management Fees
However you calculate management fees, Rent Manager’s customizable platform and unparalleled support can streamline your system.
*To learn more about these Rent Manager features, press the F1 key in your Rent Manager database to access the Help File.