Help Center - For Landlord
How do I set up automatic owner distribution invoicing?
To set up automatic owner distribution invoicing go to the “Properties” section on the left menu of your dashboard, find the property from the list, and click the “View” button. If you’ve already added the owners, select the “Owners“ tab and press the “Edit“ button next to the assigned owners.
In case you haven’t added the owners to your property yet, be sure to open the “Owners“ tab and click “+ Assign owners“. Then, select the already created owner from the list or add the new one by pressing the “+ add owner“ button.
In order to set up automatic owner distribution invoicing you should assign owner(s) to the property.
If there are two or more owners of the property, assign the percentage of ownership to each owner. This ownership percentage will be used to calculate the automatic owner distribution amount for each owner based on the ownership percentage.
If you have two owners and want only one of them to receive the owner distribution payment, you can enter 0% of ownership for the second owner. If you provide 50% for each, the system will split the invoice equally between two owners.
There are two types of possible distribution invoicing:
Net distribution invoicing
Flat distribution invoicing.
Net Owner Distribution
Select this option if you want the system to automatically calculate the amount that should be sent to the assigned owners based on the property income and expense difference.
We recommend setting the due date for owner distribution invoice after the 20th or even at the end of the month, so that you can make sure you have received all rent payments for a particular property and you will be able to pay an owner.
Owner Distribution is equal to Owner Balance minus Required Reserve where Owner Balance is equal to Property Income (paid and partially paid) minus Property Expense (paid, partially paid and open).
If property expenses exceed property income, it creates a negative owner distribution balance. If Property Income - Property Expense = $0, then owner distribution won’t be posted.
Flat Owner Distribution
Select this option if you want the system to automatically post the invoice with the fixed amount at the specified day of the month. You can enable and disable this option at any time. Both types of fees can be enabled simultaneously.
Property Reserve option specifies the required reserve from the property Owner which will be used for the automatic owner distribution invoicing. If this field is empty, it will be equal to zero.
The Property Reserve also depends on the property type. If your property is a single-family house, the Property Reserve amount would be a total for a whole building.
In the scenario with a multi-unit property, the Property Reserve amount is the reserve per each unit. The system multiplies the reserve amount to a number of units added automatically and then shows a total for a property.
Once the system begins to post the owner distributions invoices, you can view the list of all distributions by going to the Owner Distributions tab located on the Accounting page.
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Sep. 9, 2020