Property Management Overview
Do you manage bookings on behalf of other owners? Do you have co-owners or friends that own some, or all, of the cabins you manage that you charge a monthly commission to? If so, we can help with that!
We've designed a property management system that allows you to calculate commission and generate monthly statements for your owners in a way that is clean, fast and built directly into the current booking system you already use.
Our property management system follows the trust/escrow accounting model where it is assumed that you are collecting payments from guests as "rents in trust" in a separate escrow bank account. We then provide "payouts" statements, for both the owner and the PM (you!), so that money is moved from escrow to the rightful party at periodic times.
We will be adding more support articles about Property Management, but for the time being here's a walk-through of the feature.
Getting Started with Property Management
Go to the PM area using the menu up top, click the Owners tab and start adding owners. An "owner" is a person or business that owns the properties you manage. You can add as many owners as you want.
After you're done with Owners, go to the Configuration tab under PM and set your configuration. This allows you to define which owner is for which property (and commission rates specific to the property). By default, the property will have the commission that you set on the owner record. Every property that is managed for someone else (ie. that you take commission on) needs to be assigned to an owner in the Configuration tab.
Having done that, from here on, every new booking will automatically get the owner and commission % automatically assigned based on what you configured. No old bookings will have it, but you can set those manually. If you have a bunch of old bookings you want to set as "managed" (ie. that need to have commission calculated) you can use the Batch Update tool in the PM menu to find and set them all at once.
To see a booking's commission and/or set it manually on old bookings that were created before now, open any booking. You'll see a new set of tabs "Expenses" and "PM" on the far right. Click the PM tab. That will show you what the owner and commission is for this booking. If nothing is there, you can manually set it. You can also use this to override the commission if a particular booking is supposed to have a different %. For instance, say the owner brought you the booking himself and your deal with him is that instead of 15%, you'll only charge 10%. This is the place where you can set that 10% on this booking so that it doesn't affect any other booking.
While you're on the booking, take a look at the Charges tab. You'll notice two new columns showing up next to each line item: Commission and Non-Commission Amount. These columns allow you to change the amount of commission on a line by line basis. For instance, say that "pool heat" doesn't have any commission (it all goes to the owner). You could edit that particular line item to have 0% commission. Or say that the "cleaning fee" goes entirely to you as PM. You would edit that line item to have 100% commission. You can use the Non-Commission Amount column to specify a dollar amount that should be expense'd before Commission is calculated. This creates an Expense record and then calculates commission on the remainder. For instance, if your Cleaning Fee first pays a housekeeper $50 and then you get 100% of what is left, the Non-Commission amount would be $50 and the Commission % would be 100.
If the same line item is always supposed to have a different commission, you can do that on the Surcharge directly. Go to Settings > Surcharges, and you'll see that each surcharge can have a commission set there as well. This ensures that the same surcharge is always kept the same. By default, all surcharges have the same commission that is set on the owner/property unless you override it. For instance, the "cleaning fee" always goes to you. You would open the Cleaning Fee surcharge and set it to be 100% commission all the time.
Now that you've done all that, take a look at a sample statement. Go back to the PM menu, click Owner Statements, click Create Owner Statement, select the owner and put in a date and click the "Preview" button. This will show you what the statement will look like when you go to create one (before it's actually created). When you're ready to generate the statement you'd click the "Create" button instead of Preview.
The Owner Payout menu is where you will record payouts sent to the owner. Statements and payouts are separate entities in the system. Each owner statement will typically have a corresponding payout (to pay the owner whatever is on the statement), but you don't have to do that. You can apply payments to different statements and for different amounts.
You'll notice a corresponding PM Statements and PM Payouts section as well. These are similar to the Owner ones, only they create statements and payouts for the PM (you!). This is important because in a trust/escrow accounting model, the money flows first into the escrow bank account, not the PM's general operations bank account. Only then does the PM get paid, out of escrow, according to the commissions earned. Every time you prepare Owner Statements and Payouts, you'll also want to prepare PM Statements and Payouts so that you also get paid.
Take a look at PM > Expenses. This is where you'll record items you paid for on behalf of the owner. Owner Statements take expenses into account and subtract (or add) money from the statement. It is assumed that "Expenses" are paid from the PM's general operations bank account, not from escrow. When the statements are calculated, money is moved from escrow back to (or away from) the owner and PM to reimburse those expenses.
Lastly, take a look at our portal access feature. This allows you to give login access to other people (housekeepers, owners) who need to see guest or booking data. You can fine tune exactly what they see - from guest name to contact information, financial details, notes and more.
- Recommended Reading
- Getting Started
- Page-Specific Help