The process for charging management fees using the Magic Door system involves preparation, setup, calculation, and final submission.

Here is a step-by-step description of how to charge management fees as a property manager, based on the sources:

I. Preparation and Navigation

1. Input Tenant Payments: Ensure that all tenant payments received thus far have been inputed into the system, as management fees cannot be charged on transactions that have not yet been recorded.
2. Navigate to Company Revenue: Once all transactions are verified and inputed, go to accounting and then company revenue.
3. Access Management Fees: Under Company Revenue, locate and select the management fees tab.

II. Configuring Management Fee Structure

1. Open Settings: Click the settings option to go to the settings panel where you can set up how you want to create the management fees and define your structure.
2. Set General Options: Configure various settings, such as whether to include debit payments and whether to create supplementary bills.
3. Define Chart of Accounts: Select the appropriate management fee chart of account for the property (which generates the bill for the owners) and the chart of account for the company (which tracks your income as the property manager).
4. Select Billable Transactions: Determine which tenant transactions should incur management fees (e.g., you might only charge management fees on rent income, but you can also add others like utility reimbursements).
5. Set Fee Type and Limits: Select your management fee type, such as a percent of a fixed amount. You can define a percentage (e.g., 10%), set a minimum amount (e.g., \$100), and set a maximum amount for the charge.
6. Save Settings: Save the configuration once the settings are complete.

III. Calculating and Submitting Fees

1. Return to Company Revenue: Go back into the company revenue section.
2. Choose Calculation Method: While you have the option to add management fees manually (by clicking "add management fees" and inputting the property, amount, and date), the suggested approach is to use the calculate management fees function.
3. Set Calculation Period: Run the calculation "as of right now" or "as of last month" (e.g., if today is November 22nd, selecting last month charges fees up to October 31st).
4. Recalculate: Click next to recalculate all bills and transactions that have been received.
5. Review Calculated Fees: The system displays the calculation for each property, showing the income (e.g., \$4,180 income for the Griffin building) and the resulting management fee based on the set percentage and minimum fee.
6. Adjust Fees (Optional): You have the ability to change the calculated fee amount. For example, if a minimum fee of \$100 was applied to a property with no income (like Phoenix Labs), you can change it to zero or apply a discount (e.g., changing a calculated amount to \$50).
   • Note on Supplementary Bills: Magic Door supports generating management fee bills at any point in time. If payments come in for a previous month after the original bill was created, a supplementary management bill is created for that month. When generating supplementary bills, the minimum fee requirement does not apply.
7. Submit Fees: Once you are satisfied with all the management fees you want to charge, click the submit button.
8. Verification: The submitted management fees will now appear in the management fee list under company revenue and will be included in the properties reports when generated afterward.

Need More Help?

If you have questions, our support team is always here to assist.
👉 Contact us anytime at support@magicdoor.com