Setting up initial fees on a property

The steps below outline how you set up the initial fees on a property; from letting fees to admin fees and commission.

This article includes: 

• Setting up a letting fee on a property
• Setting up an admin fee on a property
• Setting up recurring management commission on a property

Setting up a letting fee on a property

You can set up single and/or regular percentage letting fee charges:

1. Click Properties on the main navigation bar
2. Select the relevant property from Recent & Favourite Properties
   1. Alternatively, find the property using the Search Properties bar in the top right
3. Click Actions
4. Within the dropdown menu, click Charge
5. Click Add Letting Fee
6. The Add Letting Fee for window opens
   1. Charge Date - Set this accordingly for when the Management Letting Fee charge is due. By default, it's the current date
   2. Frequency - Edit this if your Management Letting Fee charge is reoccurring 
   3. Rental Amount - Confirm the amount, or amend as necessary
   4. Term - Confirm the Term, or amend as necessary
   5. Letting Percentage - Enter the percentage, if required
   6. Description - Edit this so that it represents a description of the Management Letting Fee charge
   7. The Net Amount and VAT Amount calculate automatically. Check the Total Charge is correct
   8. In the Collect from Account dropdown menu, click the relevant account to make the deduction from
7. Click OK

If you don't raise the letting fee immediately, it will raise automatically on the Charge Date. However, if you do want to raise the letting fee immediately and process the landlord statement today:  

1. Tick Raise Now next to the letting fee you've created
2. Click Raise Selected

Setting up an admin fee on a property

You're able to charge a landlord a fee for a fixed amount, to be deducted from their account balance. This might be an administration fee.

1. Click Properties on the main navigation bar
2. Select the relevant property from Recent & Favourite Properties
   1.  Alternatively, find the property using the Search Properties bar in the top right
3. Click Actions
4. Within the dropdown menu, click Charge
5. Click Add Charge
6. The Add Charge for window opens
   1. Charge Date- Set this accordingly for when the admin fee charge is due. By default, it's the current date
   2. Frequency - Edit this if your admin fee charge is reoccurring
   3. Charge Item - This is where you set the item the charge relates to. In this example, click Fees, and click Administration Fee
   4. Description - Edit this so that it represents a description of the admin fee charge i.e. inspection fee
   5. Net Amount - Enter the amount payable. The VAT Amount calculates automatically. Check the Total Charge is correct
   6. In the Collect from Account dropdown menu, click the relevant account to make the deduction from
7. Click OK

If you don't raise the admin fee immediately, it will raise automatically on the Charge Date. However, if you do want to raise the admin fee immediately:  

1. Tick Raise Now next to the admin fee you've created
2. Click Raise Selected

A record of the admin fee is shown on the landlords record, within Transactions on the side menu. It'll also show on their Payments For This Landlord screen to be deducted from their next landlord statement.

Setting up recurring management commission on a property

If your Alto configuration has been set up correctly and the required management commission has been specified on the property record, the correct commission charge should be automatically applied to the property as soon as the let is finalised. This will then be automatically deducted from the landlords rental income upon receipt of the rent. 

However, if you do need to manually set up recurring management commission on a property:

1. Click Properties on the main navigation bar
2. Select the relevant property from Recent & Favourite Properties
   1. Alternatively, find the property using the Search Properties bar in the top right
3. Click Actions
4. Within the dropdown menu, click Charge
5. Click Add Commission
6. The Add Commission for window opens
   1. Description - Edit this so that it represents a description of the commission
   2. Charged on - In the dropdown menu, click Rent if it's not already pre-selected
   3. Commission % - Add/amend the required commission % fee. (VAT will be added to this figure. If the % has been added on the Property > Agency tab then the Commission % will already be populated)
   4. Calculate Using - Slide the toggles to select whether to calculate commission using the Receipt date or the Charge date. By default, Calculate Using should be set to the Receipt date. However, if the management commission is to be charged to the landlord, regardless of whether the rent has been receipted, it should be set to Charge date
   5. Deduct from Gross Amount % - Leave this field unticked unless you charge VAT on Rent and would deduct your fee from the Gross Amount
   6. Charge From - Select the charge from date, and ensure it's set to a date on or before the start date. If you don't do this, commission will not be deducted from any rent receipted before that date.
      If you have selected Receipt date, the commission will be charged on any monies receipted on or after the date set so this date should be the date of the first receipt on Alto.
      If you have selected Charge date, it should be set in line with the date rent is charged and will be applied to any monies receipted against anything charged (for Rent) on or after the date entered.
   7. End Date - Leave this field empty 
7. Once you're happy the commission is correct, click OK

You don't need to raise the commission charge - it will recur each time rent is receipted. This is reflected with the circular arrows and Frequency set to N/A.

When Alto deducts the commission, it will appear on the Payments For This Landlord screen.

Related articles: 

Creating and starting a tenancy

Initial settings on a lettings property