How do I set up automatic owner distribution invoicing?

Property Manager mode and Owner Distributions are available starting from our Pro subscription plan. 

To set up automatic owner distribution invoicing go to the Portfolio page, select the Properties subpage on the left menu of your dashboard and choose the property from the list. If you’ve already linked the owners to the related properties, 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, open the “Owners“ tab and click “+ Assign.” Then, select the already created owner from the list or add the new one by pressing the “+ Add owner“ button.

Please note!
In order to set up automatic owner distribution invoicing you must assign the owner(s) to the property and provide the ownership percentage.

If there are two or more owners of the property, provide each owner’s percentage of ownership. The ownership percentages will be used to calculate the automatic owner distribution amount for each owner.

Please note!
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 the 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’s income and expense difference.

We recommend setting the due date for the owner distribution invoice after the 20th or even at the end of the month to make sure you have received all of the rent payments for a particular property and guarantee that the distribution amount will be calculated accurately.

Formula:
Owner Distribution is equal to Owner Balance minus Required Reserve where Owner Balance is equal to Property Income (paid and partially paid; for online payments, the payment status must be "success"; pending payments are not counted) minus Property Expense (paid, partially paid, and open). 

Please note!
If property expenses exceed property income, it creates a negative owner distribution balance. If Property Income minus Property Expense is less or equal to $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 on the specified day of the month. You can enable and disable this option at any time. Both types of fees can be enabled simultaneously.

The Property Reserve is the required reserve from the property owner which will be used for the automatic owner distribution invoicing. If this field is empty, it equals zero.

The Property Reserve also depends on the property type. If your property is a single-family house, the Property Reserve amount would be the total for the whole building.

With a multi-unit property, the Property Reserve amount is the reserve per unit. The system automatically multiplies the reserve amount by the number of units of the property.

Once the system begins to post the owner distributions invoices, you can view the list of all distributions by going to the Management Tools (Owner Distributions tab) located on the Accounting page.

These links might be helpful:
How do I switch my account mode from Landlord to Property Manager?
How do I add a required reserve to the Property?
Can I connect owners to properties if I am a property manager?
How do I view and pay the owner distribution in bulk?

Last updated:
Oct. 7, 2024