Since rental income may be collected at the start of a month, or even throughout a month across a property portfolio, any associated management fees will typically be applied each time rent is collected. However, the landlord may not be paid out until the end of the month.
The agency may wish to pay these charges from available rental income in the meantime, to transfer to the office account and realise their management revenue as soon as possible. If so, the charges may be paid from available property funds at any time.
Paying charges from available rental income
Charges may be paid either individually, or multiple charges may be paid at the same time. This can be done either on a property basis, or across a number of properties from a landlord perspective. The processes are very similar.
- On the property view, go to Financial > List Charges to see a full list of property charges. Alternatively, you may click through on the charge balance shown on the property overview screen, or click a particular property charge which is displayed in another table or statement view.
- By default, all outstanding charges are shown, with the outstanding balance highlighted in red.
- Adjust the Balance Date to filter only charges on or before that date.
- From the list of property charges, click the checkbox relating to any item with an outstanding amount. You may select multiple or all items by ticking the relevant checkboxes.
- The credit remaining on the relevant property (or other properties, if appropriate) will be reduced as you select which charges to pay.
- Enter an internal payment reference and click Pay Charges to save.
The charges will now be marked as paid, the balance due to the office ledger by this property will reduce, and the funds available in the client account will also reduce since some have now been used to pay the charges.
To complete the process, but not necessary at this stage, is to transfer management revenue from the client account to the office or business bank account where it may be used or withdrawn by the business.