This help article explains how property managers set up and charge management fees in MagicDoor.

Inside, you’ll find:

• What must be prepared before management fees can be calculated.
• Where to configure management fee settings and rules.
• How to select which tenant income is fee-eligible.
• The difference between manual and automatic fee calculations.
• How management fee bills are generated, reviewed, and submitted.
• How supplementary management fee bills work when income is added later.

Use this article as a reference when configuring management fee rules and generating owner-facing fee bills.

Step 1: Verify Tenant Payments Are Entered

Before generating management fees, all tenant payments must be recorded.

• Confirm that all tenant payments you want to charge fees on have been entered into the system.
• Management fees cannot be charged on payments that are not recorded.

This ensures calculations are accurate.

Step 2: Open Management Fee Settings

Management fees are managed from the Company Revenue section.

• Go to Accounting > Company Revenue.
• Select the Management Fees tab.
• Click Settings to open the management fee configuration panel.

Step 3: Configure Management Fee Rules

Set how management fees should be calculated and recorded.

In the settings panel, you can:

• Choose whether to include debit payments

• Enable supplementary management bills

• Select the Property Chart of Account

  (used when generating management fee bills for owners)

• Select the Company Chart of Account

  (used to track your management fee income)

Step 4: Select Fee-Eligible Income

Choose which tenant transactions should be included when calculating fees.

• Enable only the income types you want to charge fees on (for example, Rent Income).
• Exclude income types like repair reimbursements if needed.
• Optionally include other categories such as Utility Reimbursements.

Only selected transaction types will be used in calculations.

Step 5: Choose Your Management Fee Structure

Define how the management fee should be calculated.

• Select a Fee Type:
  • Percentage of income, or
  • Fixed amount
• (Optional) Set:
  • A Minimum Fee (for example, $100)
  • A Maximum Fee

Click Save once your fee structure is complete.

Step 6: Generate Management Fees

After saving your settings, return to Accounting > Company Revenue > Management Fees.

You have two options:

Option A: Add Management Fees Manually

Use this if you already know the exact amounts.

• Click Add Management Fees.
• Select the property.
• Enter the fee amount and date.
• Add multiple fees if needed.
• Save your entries.

Option B: Calculate Management Fees Automatically (Recommended)

This option calculates fees based on recorded income.

• Click Calculate Management Fees.
• Choose a calculation date:
  • As of Now, or
  • Last Month (charges fees only through the previous month)
• Click Next.

MagicDoor will calculate fees per property based on:

• Recorded income
• Fee percentage
• Minimum and maximum rules

Step 7: Review & Adjust Calculations

Before submitting, you can review and modify calculated fees.

• Each property will display:
  • Total income
  • Calculated management fee
• You may:
  • Change a fee to $0
  • Apply a discount
  • Override the calculated amount

MagicDoor generates separate management fee bills for each property each month, rather than a single combined bill.

Step 8: Understand Supplementary Management Bills

If additional income is recorded after a management fee bill has already been created for a month:

• MagicDoor creates a supplementary management fee bill
• Minimum fees do not apply to supplementary bills
• Only the percentage fee is applied to the new income

This prevents owners from being overcharged or undercharged retroactively.

Step 9: Submit Management Fees

Once you’ve reviewed and finalized all amounts:

• Click Submit.

All management fees will now appear in the Management Fees list under Company Revenue and will be included in property reports going forward.

Need Help With Management Fees?

If you have questions about fee calculations or billing setup, our support team is here to help.

👉 Contact us anytime at support@magicdoor.com