Propertyware Knowledge Base

The Management Fee Calculator enables property management companies to calculate their management fees based on the management fee rules set on each portfolio. This calculation may be performed as often as desired.

You will want to take the following things into consideration when creating your management fee bill(s):

1. Which Bills Should Get Paid First? You will want to decide if you would like to pay other bills before or after your management fee bill. This decision should be based on if your management fee bill takes priority over the payment of bills from other vendors.
2. We generally recommend that you pay other vendor bills via the Bill Pay feature in Money Out before generating and paying your management fee bill. If you choose this method, then you can generate your management fee bill, pay the owner draw and generate the owners statement in just one step.

Generating Management Fee Bills by Individual Portfolios

1. Click on the Management Tab and then on the Management Fee Calculator button from the sub-navigation bar that appears immediately below the black Management Company page header.
2. Click the By Portfolio tab in the table below.
3. Select the appropriate portfolio from the dropdown menu.
4. Select the appropriate date range from the Date Range dropdown menu.
5. The page will refresh with the management bill calculation for the selected portfolio. If the selected portfolio has a set Accounting Close Date it will appear next to its name in the dropdown menu.
6. You will see the management fee calculation for the selected period in the table below by portfolio and its individual buildings:  

   Collected	The total of all payments applied toward the designated portfolio during the selected date range. Any payments applied to accounts that have been designated as a pass-through accounts will be indented here. Once you have created the management fee in a period where a pass-through exists, it will no longer appear in the calculation table, since the money has been passed through to the management company.
   Already Paid	The sum of all management fees bills created and marked as paid for the selected portfolio in the designed date range. You can see any exiting management fee bills in the designated date range in the Current Management Fee Bills For Period table at the bottom of this page.
   To Be Paid	This field displays the amount that should be charged to the selected portfolio as the management fee for the designated date range. The field will appear as zero if you have already collected the appropriate amount for your management fee.
   Calculation	This field displays the breakdown of the calculation for the management fee to be paid in the designated period. This calculation gets saved when you create the management fee bill and it available from the management summery page. The management fee rule attached to the selected portfolio appears at the bottom of the page. You can click the Edit Rule button to modify this rule on the portfolio’s edit screen.

7. To create a management fee bill for the selected date range, set the required fields that appear in the Bill to Owner table:  

   Bill Date	The date for the management fee bill.
   Bill Total	This amount will include the total that appears in the To Be Paid field above. You can override this amount by manually entering a value, but it is recommended that you not modify this amount since it corresponds with the management fee calculation that get stored with the bill.
   Bill Ref #	An option field to designate a reference number for the created bill (i.e. AUG-2008-1)
   Comments	An optional field to add a comment to the management fee bill. This field can be used to describe a non-traditional calculations on the bill for the owner.
   Create Bill As	You can select to create a management fee bill as paid or unpaid. If you select the Paid option the management fee bill will be paid from the selected portfolio's available income.  The Payment Account will be set to the default bank account for the selected portfolio with Payment Method of Check and payment date of today. By default the To Be Printed option is check to queue a check to be printed to your management company in Propertyware or QuickBooks. If you plan to write the check manually, uncheck the To Be Printed option and enter the appropriate. If you choose to create the management fee bill as unpaid then it will need to be paid from the Bill Pay option in Money Out.

8. The Current Management Fee Bills For Period table shows all management fee bills with a bill date that falls within the selected Date Range. You can view the detail of any bill in this table by clicking the View button in the Action column.
9. Click the Save button to create your management fee bill. This will open a subsequent window where you can choose to set the Accounting Close Date on the portfolio and generate the Owner Draw for the remainder of the balance, less an Portfolio Minimum set on the portfolio. Any amounts passed-through to the management company in your management fee calculation will appear as Other Income in the management portfolio.
10. The resulting management fee bill will appear in the Current Management Fee Bills For Period table with a bill split for each line item for the management fee portion that belongs to each building in the portfolio. Click on the Summary button below the page header to view the result of the management fee calculation and any issued owner draws.

Generating Management Fee Bills For All Portfolio

1. Click the All Portfolios button at the top of the table on the Management Fee Calculator page.
2. The Management Fee Calculation table displays a list of all your portfolios and their associated buildings. This table will resemble the one described for when you are calculating the management for an individual portfolio.
3. To create your management fee bill for each portfolio in the list follow the instructions for steps 7 through 10 in the section above.

Note

If you choose to delete a management fee bill from this screen, you will also be deleting the associated Other Income that gets created for the transaction in the management portfolio to reflect the income to your management company. You will not be able to delete a management fee bill if the Account Close Date on the period is set to a date the occurs after the bill date.  It is important to note that if you delete a management bill that has been associated with an owner draw and an owner statement that you have already communicated to your owner, you will want to delete and regenerate these as well.

FAQs

Q: What if I want to pay each management fee bill separately? 

A: Calculating and paying your management fees for all portfolios at once will combine all payments into one bill payment for each of the bank accounts. Thus, if your portfolios all have the same default bank account, then one bill payment and check will be created to the management company. If your portfolios have different bank accounts, then a separate bill payment and check will be create to the management company from each of the portfolio default bank accounts.

Q: Can I pay my management fee bill with all the other portfolio bills at once?

A: You can create your management fee bill as unpaid and then pay it will all the other portfolio bills in the Money Out module's Bill Pay. Once you have paid all the portfolio bills you can return to the Management module and select the Post All Owner Draws option from the Related Activities menu in the sidebar. You can then create the owner's statement from the management summery page.