Rentman will generate two types of commission invoice to the landlord.
Lettings Commission is what is charged when the tenant moves in. The commission is usually for the whole term of the tenancy.
Note. If the commission is being charged upfront (when the property is let) we will generate a Lettings Commission Invoice even if it is the only fee being charged for a managed property.
You may choose, for instance, to charge 10% Commission for Let Only properties and 15% Commission for managed properties. In both cases we generate a Lettings Commission invoice (see the Q&A examples below).
The lettings commission rate is set on the property screen (Commission tab). You can opt for either
· fixed fee,
· a percentage of the term’s total rent
· a percentage of the first month’s rent
Management Commission is what is charged with each management statement. It can be charged in addition to (or instead of) the Lettings Commission on a managed property. The management commission is set on the Building screen. You can opt for
· A fixed fee
· A percentage of the rent received (and/or a percentage of the total value of bills paid) during the statement period.
It’s that simple!
You can combine both types of invoice to cover every invoicing scenario. If it helps, think of these two types of invoice as being not what is being charged but when it is being charged.
For instance....
Q. On a managed
property how do I charge a 10% finder’s fee when the tenant moves in and a 5%
management fee each month?
A. Set the Lettings commission on the property screen to be 10% and a %of the term’s rent. Set the management commission on the Building screen (admin tab) to be 5% and the statement period to ‘Monthly’. Generate a Lettings commission for the upfront amount from the deal screen by clicking ‘Create Lettings Invoice/Statement’ on Invoices tab. Rentman will generate a management invoice for 5% of rent received each month when you produce the management statement.
Q. How do i charge a 15% management fee up front when the tenant
moves in?
A. Trick question.... you don’t; you charge a 15% Lettings Commission for a managed property. Enter 15% as the Lettings Commission on the property screen and 0% as the management commission on the Building screen. Click “Create Lettings Invoice/Statement” on the deal screen (invoice tab). The invoice generated will be posted as “Lettings & Management commission”.
Q. How do i charge a 15% management fee on rent received each month?
A. Set the Lettings Commission on the property screen to be zero %. Set the commission rate on the Building screen (admin tab) to be 15% and the statement period to be ‘Monthly’. Rentman will generate the invoice each month when you produce the management statement.
Q. How do I charge a
flat rate fee of £500 when the tenant moves in and a management fee of £100 per
quarter?
A. Set the letting commission to be a fixed fee of £500 on the property screen (Commission tab). Set the management fee to be £100 fixed fee on the Building screen (admin tab) and the statement period to be ‘Quarterly’. You will create the Letting Commission invoice for the £500 from the deal screen. Rentman will generate the £100 management commission invoice each time you produce the management statement.
Q. On a “Let Only”
property how do I charge 10% commission for a year’s tenancy in 2 invoices –
each for 6 month’s commission.
A. On the Property Screen (Commission tab) enter 10% as the commission rate and choose “% of term’s rent”. When you have created the 12 month tenancy go to the invoice tab of the deal screen and click “Create Lettings Invoice/Statement”. Choose 6 months as the invoice term. Rentman will remind you in 6 month’s time (invoices to be generated on the to-do list) that a follow on invoice needs to be created. If you wanted to generate 4 invoices each of 3 months, just enter 3 months as the invoice term when you create the first invoice. Rentman will generate the follow on invoices for 3 months each at quarterly intervals automatically.