A management income account is a non-posting income account that is excluded from an income statement, rental owner statement, and the calculation of management fees. Transactions that use management income accounts appear on the books of a property. They are hidden from rental owners through some nifty programming.
Synonyms include my money.
- I keep the late fees, so I made it a management income account. This way, my rental owner won't know how much I'm collecting.
To set up management income accounts, see "Monthly management fee policy".
How to collect management income accounts
To collect management income, simply receive a payment as normal. When the payment is allocated, choose a management income account.
For example, let's say a tenant owes you $500 for rent and $50 for late fees. Late fee income is a management income account. The tenant hands you a check for $550. To receive the management income, simply apply $500 to rent income and $50 of that payment to late fee income. When you or your rental owner runs your income statement, you'll only see $500 of rent income. The $50 late fee is hidden from the report; instead appearing on a management income detailed report.
How to pay out management income accounts
Because management income is only hidden from a handful of reports, it's a good idea to pay out those funds on a regular basis; we recommend a monthly cycle. The following process removes the management income from your property's books and from your trust account.
- Go to the Rentals menu.
- Go to the Properties page.
Click Pay out management income accounts.
This form shows the total of management income 'as of today' by bank account, by management fee policy, and vendor (it includes inactive properties, too). The bank account is the property’s operating account as described in the property or association details.
For example: Windy Woods uses the Windy Woods Operating Bank Account. It has $340 in management income to pay out for late fees. The suggested payout check for management income for this bank account would show a check with one line, but if there were another type of management income, there would be an additional line item.
Exclude any checks that you do not wish to record.
Click Show details to see what’s inside each check.
- Add the checks to your print queue, if needed.
- Click Record Checks.