Overview
Management fees are how you get paid for managing a property — finding tenants, collecting rent, handling maintenance, and more. You can set up your fee structure once for all properties, or customize it for specific properties that need different arrangements.
Note: Management Fees are not available on Starter Plans. Please consider upgrading to a higher subscription plan tier if you want more features.
Walkthrough Video
Set Up Management Fees and Configuration Walkthrough Video Link.
The Steps
Company default management fees settings allow you to configure a management fee rate for all your properties to use.
To set up your company's management fees settings, click Settings on the main menu. Then under the Company Defaults section, click Fees.
On the Fees Settings window, click the Management Fees tab.
On the Management Fees tab, under the Payment Recipient section, select the appropriate vendor (your property management company) in the Vendor dropdown menu. (Be sure to create your property management company as a vendor first. Click the Create New button at the top of the main menu to add your company as a vendor before configuring management fees. Read this article on how to add a vendor.)
In the Fee Structure section, start off by clicking the Add Management Fee button under the Configure Management Fee section.
You will have three choices here when selecting your fee type:
Percentage of income charged (Accrual Basis) - If your fee is based on the charges to tenants, regardless of their payments, pick this method. This calculates the fee as a percentage of charges created on leases for the revenue accounts you choose. Select the Base Category (such as rent) for the management fee and enter the Fee percentage. Choose the Expense Category (Management Fees) 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 income collected (Cash Basis) - If your fee is based on the actual money you collect from tenants, pick this method. This calculates the fee as a percentage of payments received for the revenue accounts you choose. Select the Base Category (such as rent) for the management fee and enter the Fee percentage. Choose the Expense Category (Management Fees) 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 (Management Fees) for the fee, such as the default Management Fees expense account. Use the Add Another Fee link to add additional fees if necessary.
If you have a minimum fee you collect, toggle on the setting for Set a Minimum Fee. This ensures your management fee will at least be the amount entered here. (Once the total of your other fees exceeds this amount, DoorLoop uses that total instead.) Enter the Fee amount and choose the Expense Category for the fee.
In the Set Up Payout Categories section, click Add Payout Category if there's an account in your chart of accounts for which your management company keeps the total amount, passing nothing on to the owner. Use the dropdown to select the account. These accounts won't show up as revenue on the Profit & Loss report or the Owner Statement.
Click the Add Payout Account agai if you need to add others.
Click Save Changes 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. For more detail about Payout Accounts, read Set Up Your Management Payout Categories.
Property-Level Management Fees
If you want to set property-specific Management Fees settings, click Customize on the Customize by Property banner. For more details on how this works, see Customize Settings by Property or Lease for detailed instructions.
Note: If you have different units on the same property owned by different owners with different management fee structures, create a new property for each unit so you can set up different management fees for them.
Preview your management fee setup
As you set up your management fees, you'll notice a Simulation window on the right-hand column showing exactly how your calculations work based on your settings. Click Edit Inputs to change the default amounts used.
Next Step
Create and Pay Management Fee Bills - Now that you've set up your management fees, the next step is to create and pay your Management Fees.