Using the Management Center, Management Fees are set up using the Association > Services Page. For the Associations that will pay you a Management Fee, click + New Service and create your Management fees using the Service Type of Management Billing. This service type is only used for Monthly Management Fees, for steps on setting up Admin Billing, see Management Center - Admin Billing.
After this Service is created, drop down this item and click + New Contract. The process for setting up a Management Fee follows many of the same steps and uses the same logic as other Contracts, except as detailed below. For more details on setting up Service Contracts, visit Association Service Contracts.
Below are a few considerations when creating your Management Fees contract.
- Your Management Company will need to be set up, and selected, as a Service Provider as well as an Association. For help with this, visit How to Setup a New Service Provider
- Set a unique account number for this Contract. For ease of identifying these invoices, we recommend MGTFEE[Assoc Code]
- Regarding Approvals: For Flat Rate fees, it is easy to Approve these as "Exact amount" approvals. For Tiered or Category rates, it is best to calculate the maximum fees that could be charged and approve "Less than" that amount.
- Regarding Attachment: This is a good place to upload a copy of your Management Contract. Keep in mind, however, that anyone with access to view Service Contracts will also have access to view these attachments.
When Setting up the Management Fees themselves, Vantaca has several options that allow you to set your fees in accordance with your Management Contract, and automate those fees, no matter how complex they may be.
When setting up your Rates, you may use any combination of the following Rate types:
Flat Rate management fees are the most basic fees to set up. Under the Management Fee section of the service contract, you will only need the following fields:
Fixed Amount: This is the amount of your monthly Management Fees. This amount will be charged to the Association every month.
Assessment Type: This list is populated from the Association > Assessment page for your Management Company Association. Select the Appropriate charge type from the drop down. For information on setting up these Assessment types, visit Management Center - Management Company Assessments
GL Account: This is the Expense GL that your Association will use to pay this invoice.
Fund: This is the Fund that your Association will use to pay this invoice
Tiered Rates are Management Fees that are based on the number of properties. For instance, in a developing community, you may charge $X.XX per property for the first 249 units, then reduce the price after that. Tiered Rates can also take advantage of minimum and maximum rates.
Minimum/Maximum Amount: These fields can be used to set a minimum or maximum charge per invoice. For example: In the example below, a developing community charges $5 per property for the first 249 properties. If there are only 30 properties currently in this Association, the Management Fees will still charge the Minimum per month: $1,245.
To add a tiered rate, in the Management Fee section of the Edit Contract screen, click + New Rate. Each time you wish to add another rate, click that button again.
From/To: These columns allow you to set the Range. For instance, in our example above, the first tier would be From: (1) To: (249) at one rate, and From: (250) To: (1,000) with 1,000 being the maximum number of properties in the community.
Using the GL Account and Fund columns on these individual line items will override the Default GL Account and Fund as set up above.
Category or Tag rates can be used when needed for charging different amounts based on a predetermined item: such as Single Family Homes vs Town Homes.
In the example below, you can see the From and To columns show a wide range; it doesn't matter how many there are of each category.
Using the Property Tag column, we are able to denote that Single Family properties are charged at $2.50 each, and Town Homes are charged $4.00 each. The Property Tag column populates a dropdown list of tags available in the community. For information and details on uploading these tags, visit Importing Homeowner Tags to an Association.
You'll also notice, that a Fund is selected for the Town Home rate, meaning that this line item of the invoice will be paid using the "Townhomes" Fund, and the Single Family line will use the default Operating fund.