Overview

If you charge management fees to manage your properties, DoorLoop can calculate the fees automatically and create bills on your behalf. You can either configure the same management fee settings for all of your properties, or a property can have unique fee settings.

The Steps

  1. Configure Company Management Fee Settings

  2. Configure Property Management Fee Settings

  3. Create and Pay Management Fee Bills


Configure Company Management Fee Settings

Company management fee settings allow you to configure a default rate for your properties to use. If you have unique management fee rates on each of your properties, skip to the property management fee settings section.

Step 1

Go to Settings, scroll down to the Property Settings section, and click on the Management Fees button.

Step 2

In the Payee section, choose the appropriate vendor (likely your own property management company) in the Select Vendor dropdown menu.

If you haven’t created the vendor in DoorLoop, you can cancel out of the settings window and use the Create New button in the upper left corner of the screen to add the vendor before configuring management fees.

Step 3

In the Management Fees section, toggle on the appropriate fees. Note that you can pick more than one if necessary! We’ll explain the different options for you:


Add a fee based on payments received (Cash Basis)

  • If your fee is based on the actual money you collect from tenants, pick this method. This will calculate the fee as a percentage of payments received for the revenue accounts you choose.

  • Select the Base Account for the management fee and enter the Fee percentage. Choose the Expense Account for the fee, such as the default Management Fees expense account.

  • Use the Add another account link to charge a fee on another base revenue account.

Add a fee based on charges posted (Accrual Basis)

  • If your fee is based on the charges to the tenants, regardless of their payments, pick this method. This will calculate the fee as a percentage of charges created on leases for the revenue accounts you choose.

  • Select the Base Account for the management fee and enter the Fee percentage. Choose the Expense Account for the fee, such as the default Management Fees expense account.

  • Use the Add another account link to charge a fee on another base revenue account.

Flat fee

  • If you charge a set, non-percentage fee every month, pick this option.

  • Enter the Fee amount and choose the Expense Account for the fee, such as the default Management Fees expense account.

  • Use the Add another fee link to add additional fees if necessary. You may need to do this if you charge another fee to a different expense account.

Minimum fee

  • This option ensures that your management fee will at least be the amount entered here. Once the total of your other fees exceed this amount, DoorLoop uses that total instead.

  • Enter the Fee amount and choose the Expense Account for the fee, such as the default Management Fees expense account.

  • Use the Add another fee link to add additional fees if necessary. You may need to do this if you charge another fee to a different expense account.

Step 4

In the Management Payout Accounts section, toggle on Payout accounts if there is an account in your chart of accounts for which your management company keeps the total amount, passing nothing on to the owner. This means that these accounts will not show up as revenue on the Profit and Loss report.

For example, you might have an agreement where you keep all late fees and rental application fees, or you might keep tenant payments related to repairs and cleaning which you use to pay other vendors.

Use the dropdown menu to select the account and use the Add another account link if you need to add other accounts.

Step 5

Click Save to finish.



Configure Property Management Fee Settings

To use the management fees feature for your properties, you will need to turn on management fees for each property you will create management fees for.

Step 1

Go to Rentals < Properties and click on the property you want to turn on management fees for.

Step 2

Click on the Settings tab and then on the Management Fees button.

Step 3

Toggle on Specify a management fee structure for this property and choose whether or not you want to use the company default or specify a new management fee structure.

Step 4

If you want to specify a unique management fee structure, use the same instructions above for Configure Company Management Fee Settings, starting at Step 2.

Click Save when you are finished.


Create and Pay Management Fee Bills

To avoid accidentally creating the same management fees more than once, we recommend consistently creating your management fee bills every month rather than trying to go back and do several months at a time.

To assist in preventing this, our automatic management fees feature defaults to the previous month. For example, using the feature to create management fees in February defaults to creating the fees for January. You can change the dates, but make sure you aren't duplicating management fees you've already created. The date range is also used to hide the properties for which the last date when you generated management fee bills is not after the start date for the date range.

When creating and paying management fee bills for the month, it is important to make sure you’ve entered all lease transactions for that month, otherwise your management fees won’t be calculated based on accurate amounts!

Step 1

Click on the + Create New button in the upper left corner and choose the Management Fees option found under Vendor Transactions.

Step 2

This brings up a page showing the potential management fee bills you can create for the previous month for each property. You can change the time period if needed, use the filters to narrow down the list of properties, or manually deselect properties you don’t want to create bills for.

When you’ve selected the appropriate properties you want to create management fee bills for, click the Create Bills button.

Step 3

A results window lists the number of bills created and for what amounts. You have two options for your next step.

The View Bills option opens a new tab showing a transactions list report listing the bills you just created. Here you can click on the bills and edit them as needed.

The Pay Bills option opens a new tab for DoorLoop’s Pay Bills wizard, with the management fee bills you just created already selected.

  • If you have enough available funds for each property, the Payment Amount will auto populate and you can click Next to pay the bills.

  • If you don’t have enough available funds but want to record the bill payments anyway, toggle off Automatically Pay in the Actions column and click the Edit links. Here you can override the insufficient funds protection by entering the Payment Amount for each bill and clicking the Save button. Now you should be able to click the Next button to pay the bills.

Step 4

On the Create Payments window, you can change the Payment Date, the Payment Method, and choose whether you want to print checks later if you choose check. When you are ready to finalize payment, click Finish.

That’s it! You’ve created and recorded payments for your monthly management fee bills. If you try to create new management fee bills for the same month, DoorLoop won’t show any potential bills by default because you have already created them. Be careful that you don’t override this by including already billed properties and double-creating your management fees.

FAQ

After I've created management fee bills, what if I want to wait until later to record the bill payments?

  • In DoorLoop vendor bills are a two-step process, so you can wait to pay a bill if you want. For example, you create your management fee bill to show that you, the vendor, are owed money. When you actually collect the money, you record the bill payment to show it has been paid.


When do I record payments for my management fee bills if I withhold the money from tenant payments I receive?

  • If you deduct your management fees from property revenue before sending the remaining income to the owner, go ahead and create the management fee bill payments right after you create the bills.

  • The bill payment reduces the funds available to distribute to your owner by the amount of your management fees. This way, when you record the owner distribution, you won't accidentally distribute the full revenue amount because you forgot to record your management fee bill payment.


When do I record payments for my management fee bills if the tenant payments go directly to the owner?

  • If the tenant payments go directly into the bank accounts of the property owners, you can record the management fee bill payments when the owner actually pays you for the bills you send them.


I forgot to enter all the lease transactions before I created management fees. How do I fix this?

  • If you created management fees with incomplete data, you will need to delete the bills and redo the management fee process. Make sure all lease transactions are accurate before redoing your management fees!

  • There are multiple ways to find and delete bills and bill payments, but we recommend going to Reports and choosing the Transactions List report in the Accounting section. Here you can filter the transactions by date, the type of transaction, and vendor to help you narrow down your transaction list to find the bills you need to delete. Since your property management company is the vendor, filtering by the correct time period and yourself as the vendor will likely suffice.

  • If you also paid the bills, you will need to find and delete the Bill Payments before deleting the Bills. Delete these by clicking on each line item in the report and choosing Delete in the lower left corner of the screen.

  • After you’ve deleted the bill payments and bills, you will need to redo the Create and Pay Management Fee Bills process. However, on Step 2, you will need to make sure the correct date range is selected, and change the Billed Properties dropdown to Include Already Billed. This way you can see the properties which previously had management fees created for them, and you can select the properties you need to recreate management fees for before continuing the process.

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