Owner ledgers, statements and payouts
Rent 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.
PLANSFrom Growth
The problem it solves
- Owners' rent and your own income sit in one account, and nobody can say what belongs to whom.
- Statements are built in a spreadsheet at month end and owners wait days for them.
- Fees are taken by hand and sometimes twice, sometimes not at all.
- A payout empties the owner's balance, and the next urgent repair has nothing to draw on.
How it works
- An Administrator sets up client money once in Lease > Configuration > Settings. Set the owner rent payable account and the fee income and tax withheld accounts. Then set the client money bank and the owner entries journal.
- Rent bills of units under a running management agreement are booked to the owner payable account.
- Every day the owner ledgers fill. They hold rent collected split between the owners by their shares, your management fee, letting and renewal fees, and repairs the owner pays.
- At period end a Lease Manager opens Make Owner Statements, picks the dates (last month to start with) and presses Make Statements. Each owner with new entries gets a draft.
- Check a statement and press Send to Owner. Fees and tax are posted out of the owner's money, and the owner gets the statement with the PDF.
- Press Pay Out. The owner is paid from the client money bank, keeping the reserve back.
Everything it does
What reaches the ledger
- Rent collected: as a bill is paid, its share of each rent line, split by the owners' shares on the day. Part payments count in proportion
- Credit notes take rent back off the ledger
- Management fee: on rent collected as it is paid, or on rent billed when the bill is posted. Or a fixed amount per unit once a month
- Letting fee or renewal fee when a lease of a managed unit is confirmed
- Repairs the owner pays, when the vendor bill of the work order is posted
- The daily run is Lease: owner ledgers
The statement
- Opening balance, rent collected, fees, expenses, tax withheld, paid out, reserve kept, closing balance and To Pay Out
- Takes every entry of the owner up to the end date that is not yet on a statement
- Tax withheld: for owners marked Lives Abroad, their percentage of the rent on the statement
- Reserve: the reserves of the owner's running agreements; To Pay Out never goes below zero
- Work Out again after a late entry; Print for a PDF at any time
Accounting
- Send to Owner posts one entry moving fees to fee income and tax to the tax withheld account
- Pay Out makes an outgoing payment from the client money bank and a payout line on the ledger
- A statement with nothing to pay is marked Paid with no payment
- Draft, Sent, Paid, Cancelled; Cancel works on a draft only
Access
- Lease > Billing > Deposits and Owners > Owners' Money is for Lease Managers
- Each Entity sees its own owners' money
Who uses it
Lease ManagerMakes, checks and sends statements, and pays owners out.
AdministratorSets the client money accounts, bank and journal.
OwnerReads statements and downloads the PDF on the web or in the app.
Where you use it
- Web: Lease > Billing > Deposits and Owners > Owners' Money > Owner Ledger, Owner Statements, Make Owner Statements
- Owner web page: Statements, with the PDF
- The SmartMy Lease app: Owner > My Properties > Statements (built and in testing, not in the app stores yet)
- Not by bank file: payouts are payments in your accounts; send the money through your bank as usual
What you control
Settings
- Owner rent payable, management fee income, tax withheld from owners accounts; client money bank; owner entries journal
- Per agreement: fee type and value, reserve, Statements by Email (on to start with)
- Per owner: Lives Abroad and the tax withheld percentage
Notifications
- Owner Statement: to the owner when a statement is sent, by email with the PDF and in the app. It goes when any of their agreements has Statements by Email
- Each person can switch off a channel, such as email, for themselves; in-app notices always arrive
Questions
Does owners' rent show as our income?
No. Rent of managed units is booked to the owner payable account. Only your fees move to fee income, when the statement is sent.How is rent split between co-owners?
By their shares on the day the rent is collected, as recorded on the unit's owners.Are statements made by themselves each month?
No. You run Make Owner Statements for the period you choose. It makes a draft for every owner with new entries.Can owners see their statements?
Yes, once sent: on their web page and in the app, with the PDF. By email too when Statements by Email is on.Which plan has it?
Growth and above.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 MONEYClient money check: bank against what is owed and heldPick a day and see the client bank balance next to what you owe owners and the deposits you hold. The difference tells you whether client money adds up before the next payout.OWNERS AND CLIENT MONEYLetting and renewal feesSet 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.OWNERS AND CLIENT MONEYOwners approve repairs, with their own pages and appOwners sign in to see their units, how long each is let and their statements, on the web and in the SmartMy Lease app. From Growth, a repair over the owner's limit can wait for the owner's approval.ACCOUNTINGFull accounting with GST returnsRent bills, deposits, cheques, owner money, vendor bills and the leases you take all land in the books of the same system. Scale adds the full accounting screens and reports, from ledgers to cash flow, and GSTR-1 and GSTR-3B for Indian Entities.
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.