Letting and renewal fees
Set the letting fee and renewal fee in each management agreement. When a lease of a managed unit is confirmed, the fee is taken from the owners' money by itself and shows on their next statement.
PLANSFrom Growth
The problem it solves
- The letting fee is forgotten when a busy agent signs a new tenant.
- Renewal fees are charged on some renewals and not others.
- Owners dispute a fee because nobody can show how it was worked out.
How it works
- In the management agreement choose the letting fee: None, Weeks of Rent, Share of the First Year or Fixed, and its value. Add the renewal fee.
- Let the unit as usual. When the lease is confirmed, SmartMy works out the fee from the lease's monthly rent.
- A new lease takes the letting fee; a renewal takes the renewal fee.
- The fee is split between the unit's owners by their shares and goes on their ledger, dated the lease's start.
- It shows under fees on the owner's next statement and moves to your fee income when the statement is sent.
Everything it does
How the fee is worked out
- Weeks of Rent: the yearly rent divided by 52, times the number of weeks
- Share of the First Year: a percentage of twelve months' rent
- Fixed: the amount you set
- Renewal: the renewal fee amount
- A lease of several units takes each unit's part of the rent
Rules
- Only units under a running management agreement on the lease's start date
- Taken once, when the lease is confirmed from draft
- Shown on the ledger as Letting Fee or as a renewal fee, with the lease number
- Inspection fee: recorded on the agreement, not charged by itself today
Who uses it
Lease userSets the fees in the agreement and confirms leases.
Lease ManagerSees the fees on statements and sends them to owners.
OwnerSees each fee on their statement.
Where you use it
- Web: the Fees part of a management agreement; the Owner Ledger
- Owner statements on the web and in the app
- Not an invoice to the owner: the fee is taken from the rent you hold for them
What you control
Settings
- Letting fee type and value, renewal fee: per management agreement (None to start with)
Notifications
- None of its own: the fee shows on the owner's statement
Questions
When is the fee taken?
When the lease is confirmed. It is dated the lease's start, so it lands on the statement for that period.Can a fee be charged to the tenant instead?
These fees are taken from the owner's money. A charge to a tenant is added on the lease as a charge.What if the unit has two owners?
The fee is split by their shares on the start date, like the rent.Which plan has it?
Growth and above, with owners and management agreements.Related features
OWNERS AND CLIENT MONEYOwners with shares, and management agreementsRecord who owns each unit and in what share, over time. A management agreement holds your fee, the letting and renewal fees, the owner's repair limit, the reserve you keep back and how statements go out.OWNERS AND CLIENT MONEYOwner ledgers, statements and payoutsRent you collect for owners goes to an owner payable account, not your income. Each owner's ledger fills by itself with rent, fees and repairs, and each period you send a statement and pay out from the client bank.LEASES AND RENTLeases with joint tenants, guarantors and several unitsA lease holds the tenant, joint tenants, occupants, guarantors, one or more units, the term, the rent and how it is paid. Confirm it and the rent schedule, the deposit and the unit statuses follow.LEASES AND RENTRenewals, breaks, holdover and notices to vacateRenew a lease with a new term and rent, and offer it to the tenant on their page. Let the new lease take over on its first day. Break options, holdover rent and notices to vacate each have their dates.LETTINGEnquiries, viewings and the leasing pipelineEvery enquiry, from your listing pages, a walk-in or a call, lands in one board. Book viewings, record how they went, and follow larger lets as deals from first call to heads of terms and signing.
See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.