Skip to main content
All CollectionsRentals (Property Managers)Getting StartedModule 2: Automate Accounting
Set Up Your Management Fee Policy
Set Up Your Management Fee Policy

Automatically calculate management fees and assign management payout accounts to create and pay management fee bills.

Samuel avatar
Written by Samuel
Updated over 2 weeks ago

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.

Note: Management Fees are not available to Starter Plans. Consider upgrading to the Pro or Premium Plans to access this feature.

The Steps

Configure Company Default 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.

  1. The first step in setting up your Company Management Fees is to click Settings on the main menu. Then scroll down to the Property Settings section, and click on the Management Fees button.

  2. In the Payment Recipient section, choose the appropriate vendor (usually your own property management company) in the Select a 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. Read this article on how to add a vendor.

  3. In the Set Up Your Management Fee Structure section, start off by clicking the + Add Fee button under the Configure Management Fee section. You will have three choices here when selecting your fee type:

    • Percentage of 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 Category for the management fee and enter the Fee percentage. Choose the Expense Category for the fee, such as the default Management Fees expense account.

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

    • Percentage of charges posted (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 Category for the management fee and enter the Fee percentage. Choose the Expense Category for the fee, such as the default Management Fees expense account.

      • Use the Add Another Fee 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 Category 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.)

  4. Next, if you have a minimum fee you collect, toggle on the setting for Set a 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 Category for the fee, such as the default Management Fees expense account.

  5. In the Set Up Payout Categories section, click + Add Account 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 these accounts will not show up as revenue on the Profit & Loss report or the Owner Statement.

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

  6. Click Save to finish.
    ​

Tip: Use Payout Accounts if you plan on keeping 100% of the income from accounts such as Late Fees, Applications Fees, Convenience Fees, etc.

Configure Property-Level 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.

  1. To set up your property-specific management fee policy, click Rentals on the main menu and then click Properties. Click on the property you want to set property-specific management fees.

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

  3. On the Property Management Fees window, select Enable management fee for this property if you plan on using management fees for this property. Then, if you want custom management fees for this property, select "Specify a management fee structure for this property." You will need to enter all new management fees for this property and use the same instructions above for Configure Company Management Fee Settings.

  4. Click Save when you are finished.

Preview your management fee setup

As you set up your management fees, you'll notice a Simulation window on the right-hand column that shows exactly how your calculations work from your management fee settings. You can change the default amounts from which the calculations work by clicking the Edit Inputs button.

Next Steps

Did this answer your question?