Overview
If you charge management fees to manage associations, DoorLoop can calculate the fees automatically so you can create accurate management fee bills. You can either configure the same management fee settings for all of your associations, or a specific association can have unique fee settings.
The Steps
Configure Company Management Fee Settings
Company management fee settings allow you to configure a default rate for all your associations to use. If you have unique management fee rates on each of your associations, skip to the association management fee settings section.
The first step in setting up your Company Management Fees is to click Settings on the main menu. Then scroll down to the Association Settings section, and click on the Management Fees button.
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.
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.
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, or you might keep 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.
Click Save to finish.
Configure Property Management Fee Settings
To use the management fees feature for your associations, you will need to turn on management fees for each property you will create management fees for.
The first step in setting up your Association Management Fee settings is to click Associations on the main menu and then click Associations List. Click on the association you want to turn on management fees for.
Click on the Settings tab and then on the Management Fees button.
Toggle on Enable management fee for this property and choose whether or not you want to use the company default or specify a new management fee structure.
If you want to specify a unique management fee structure, select the option "Enable management fee for this association." Use the same instructions above for Configure Company Management Fee Settings.
Click Save when you are finished.