would you like to build your property management service clients in the smoothest and easiest way
well then you should use the technique shown in this video billing clients for management services
if you have any questions about this topic you can leave them in the comments section below and i'll
do my best to help you and of course if you feel the video helped you i hope you will click like
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do we bill our clients well we send them an invoice with the amount they owe us
as per our agreement the amount is usually a percent of the gross rent that we collect
you must enter an invoice for each individual tenant so that the landlord client can see exactly
how much was decreased from their payout balance for each tenant's rent the invoices can be sent
individually or just summarized on a monthly statement that you send to the landlord client
don't worry you only have to enter the invoice one time ever and that's what's great about quickbooks
once it's correct and saved once you can memorize the invoice so it will be entered
automatically by quickbooks that's how great this is first example let's imagine on january 31
the end of the very first month that we're operating we created an invoice for 300
for january service regarding tenant betty boop under alan arby the landlord now this is what the
trial balance looks like before we send an invoice to one of our tenant one of our landlord clients
that we earn 300 from them and management fee service for one particular tenant but if we make
one invoice billing a landlord client for one particular tenant service that they got
what will happen well the three hundred dollars that we earned in service fee will
show up as management fees income for the first time in the trial balance
and because we are billing the client and taking it out of what we're going to pay them
it means at the moment we bill them for the service we rendered the amount we owe them will
decrease by 300 and become 13 700 rent payable to landlord clients let's see if that's the result
let's open the trial balance before we record our first invoice to record the invoice click invoice
and of course we put the last day of the month the first month that we've rendered services for
all of our landlord clients now we are billing alan arby but we're billing him specifically
for the service that we rendered to betty boop as a percent of her income
and there's only one item to bill her for property management services and in the case of betty
we know that if we build 10 of the rent to the landlord and then betty's rent is 3 000 that means
that we know with the amount is going to be 300 every single time because betty's rent is 3 000
every single time and when we click save and close let's just stop this from popping up in the future
here okay notice the results are exactly as what we expected
the rent payable to landlord clients decreased we owe them less because we earned 300
in management fees income but the most important report to check is right here look at this
we were going to pay 3000 to allen as a result of managing betty but because we are now billing
300 we only have to remit a two thousand seven hundred dollar payment to allen because of betty
because even though we collected three thousand we keep 300 for when we build alan let's do a
second example let's imagine on still on january 31 let's do candy charles her rent was 4 000
so the amount that we keep from her rent would be 400 so if we bill if we send an invoice declaring
that we earned income for allen as a result of candy charles we earned 400 more in income so
management fees income should increase however the landlord uh we owe to the landlord 400 less
in a remittance because we just earned service fee and we're going to take it out of what we pay back
so these should be the numbers after doing the second example very simple
all right this is really annoying okay uh very simple we again just click invoice and leave the
date and this time we're billing alan for candy charles and the service we did on on her behalf
and property management services and in this case
by the way 400 by the way your invoice number should be invoice number two
i was just experimenting with the file but this should only be the second invoice in your file
400 as you can see is 10 percent of the 4 000 that we collect so we bill for 400 in services
and withhold that from the payout so we click save and close and the results on the trial
balance are exactly as what we expected but if you want to see the important details
look at the landlord payout balances report and you see we were going to give alan 4 000
because we collected that from candy but we are keeping 400 for the service income that we earned
so now we only owe allen 3 600 as a result of candy which means we only have to pay alan 6300
we did collect seven thousand for allen but we're only going to give him six thousand
three hundred because we build him for each individual service for each individual tenant
now let's see how easy it is to do the other client now that we know how to do it we're
still at the end of the month and we're going to send an invoice to dave deeney
specifically for the tenant eddie edwards three hundred dollars ten percent of eddie's rent
what will the result be if we bill for three hundred dollars more well we've earned three
hundred dollars more in management fees income however that means we have to pay out
three hundred dollars less in the future because we're going to withhold what we've earned from the
payout let's see if these are the results very simple click invoice quickbooks remembers were
at the end of the month don't do this you messed up your number i messed up my numbers but yours
should say the number three it doesn't really matter you can change the number to anything you
want but we're building dave specifically for eddie edwards on the end of the month date and
we're billing for property management services three hundred dollars after we click save and
close we can check the trial balance management fees income is exactly as what we expected
and rent payable to landlord clients went down to exactly the amount we
expected but most importantly the landlord payout balance report shows
that instead of paying dave deeney the 3 000 we collected from eddie we're only going to
pay 2700 of what we collected to eddie because we earned this 300 from the invoice and lastly
we will bill dave deeney for freddie froda 400 because freddie's rent
is 4 000. so if we've earned 400 more management fees income that goes up to 1400
but then we will pay out 400 less later because of what we earned so that goes down to 12 600.
let's take a look if that's the result very simple invoice it remembers the date all you have to do
is choose freddie froeda choose the only item of service the company offers and put the amount
where billing your client oops specifically for that one tenant click save and close and
the results are exactly as what we expected and now you can see we know exactly how much to pay
each client you see when we give alan his money at the end of january we're only giving him 6
hundred because he's only entitled to twenty seven hundred from the three thousand we collected from
betty and he's only entitled to thirty six hundred from the four thousand we collected for candy
because of the income that we earned from them on the invoice and again you could double click
you could email or print the invoice and you could send them in a batch or you could basically just
filter this report and send this the that customers piece of this report to explain