Skip to main content

Record a Commission Payment to a Realtor or Broker

Paying a commission to a realtor or broker? Here's how you would record those payments

Samuel avatar
Written by Samuel
Updated over 10 months ago

Overview

It's not uncommon to pay a commission to a Realtor or Broker if they helped secure a tenant for your current rental property. It's part of the business. However, how would you record that in DoorLoop? It's as simple as creating an Expense.

The Steps

Creating a Commission Account in the Chart of Accounts

  1. To create a commission account category for use on expenses, click Accounting on the main menu and then click Chart of Accounts.

  2. Click the + New Account button at the top right corner.

  3. Fill in the following information:

    • Type: Expense

    • Account Name: Commissions

  4. Click Save to finish.


Create the Realtor or Broker as a Vendor

  1. To create the realtor or broker as a vendor, click People on the main menu and then click Vendors.

  2. Click the + New Vendor button at the top right corner.

  3. On the New Vendor window, fill in the following information: Company Name and/or First Name/Last Name.

  4. Click Save to finish.


Create the Expense to Pay the Realtor or Broker

  1. To create the expense for commission payments to the realtor or broker, Click the + Create New button at the top left corner and then click Expense under the Other Transactions section.

  2. On the New Expense window, complete the relevant fields as follows:

    • Select Payee: Select Vendor and then the name of the Realtor or Broker

    • Reference: Use the default unique reference number, or enter your own.

    • One Time Expense: Make sure this is selected.

    • Expense Date: Select the payment date of the expense.

    • Pay From Account: Choose the bank account paying the expense.

    • Payment Method: Choose the payment method.

      • Check - Enter a check number if you already have your own checks sent outside of DoorLoop. Otherwise, select "Add to Print Queue" if you plan on printing the check out in DoorLoop. Read: Print a Check for more information.

      • ePay - Choose this to send a payment electronically if you have already signed up for Checkbook.io.

      • All other payment method choices require payment outside of DoorLoop.

    • Property/Unit: Choose the property and/or unit incurring the expense.

    • Category: For this, you'll want to select Expense > Commission

    • Description: Add an optional description for the expense.

    • Amount: Enter the amount of the expense.

    Add multiple expense lines by clicking on the + Add Line Item. You can remove line items by clicking on the trash can icon on the right side of each line item. The Property field will be filled in automatically for each new line item based on the initial property input.

  3. Add any additional information in the Add memo section, or relevant files by using the Click here link.

  4. Click Save to finish.

Note: If the realtor or broker takes a portion of the first month's rent before transferring the funds to you, you will still need to receive the full payment for the rent on the lease. Then, record an expense as usual, but use Other as the payment method.

Next Step: If you choose ePay as the payment method, send the electronic payment to your recipient. To do so, follow the instructions here: Send a Payment to a Tenant, Vendor, or Owner

Did this answer your question?