This article describes the setup for management fees, including selecting the accounts that will be subject to management fees, entering the fee amounts, and adding your property management company as a vendor.
To make GL accounts subject to management fees
Open the relevant GL Account screen. (Admin > GL Account).
Open the screen for editing, and select the Subject to Management Fee check box.
Typically, you would make most of the income accounts subject to management fees: Rent, Miscellaneous Income, Parking, and so on.
Late Fees are a special case. If the contract with your owners allows you to keep 100% of Late Fees, do not select the Subject to Management Fee check box for the Late Fee account. Instead, you can include all the late fees when you calculate management fees. If you only receive a percentage of Late Fees (as you do for other income accounts), select the checkbox.
To check the management fee account
Check that your database has an account for management fees (Admin > GL Account).
If you are using the pre-configured chart of accounts, the Management Fee Account is 6300.
If the account does not exist, set it up, using the screenshot above as a guide.
To enter the management fee percentage at the company level
At the company level, you set up defaults for the management fee percentage and the minimum fee amount. At the property level, you can change them.
Go to the Company Settings screen. (Click your initials in the upper right-hand corner of the screen and select Company Settings.)
Open the Account Settings tab.
Enter the management fee percent and the minimum amount.
The minimum amount is applied per property. If the calculated amount is lower than the minimum, then the minimum is used.
To enter the management fee percentage at the property level
New properties inherit the percentage and minimum amount from the Company Settings screen. At the property level, you can edit them.
Go to the Property screen. Management fees are on the right.
When Breeze calculates management fees, it uses the settings at the property level.
Note: Properties added before you set up management fees will not inherit the settings from the system level; you will have to add them manually.
To set up your property management company as a vendor
Go to Vendors > Add New.
Add your company as a vendor, so you can create payables to it.
To run management fees
To calculate fees and create payables, go to Accounting > Accounts Payable > Pay Management Fees.