{"id":13642,"date":"2020-07-13T12:56:57","date_gmt":"2020-07-13T19:56:57","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=13642"},"modified":"2020-08-18T10:18:50","modified_gmt":"2020-08-18T17:18:50","slug":"common-tenant-charges","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/common-tenant-charges\/","title":{"rendered":"Common Tenant Charges in Property Management and Rental Housing"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-13650\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2020\/07\/Recurring-Tenant-Charges.png\" alt=\"common tenant charges\" width=\"950\" height=\"558\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2020\/07\/Recurring-Tenant-Charges.png 950w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2020\/07\/Recurring-Tenant-Charges-300x176.png 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2020\/07\/Recurring-Tenant-Charges-600x352.png 600w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2020\/07\/Recurring-Tenant-Charges-768x451.png 768w\" sizes=\"(max-width: 950px) 100vw, 950px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The most common, and obvious, charge in property management is monthly rent. This recurring payment is charged to tenants, often on a monthly basis, as outlined in the lease agreement.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beyond monthly rent, there are other common charges incurred by tenants that need to be accounted for each month. Things like monthly pet fees, utilities, internet services, and lawn maintenance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article gives a quick overview of types of common recurring charges in property management and rental housing.\u00a0<\/span><\/p>\n<hr \/>\n<h2>Missed the free educational webinar?<\/h2>\n<p><span style=\"font-weight: 400;\"><strong> Managing Recurring Transactions<\/strong><br \/>\nWant to learn some accounting tips for managing recurring fees and transactions?<br \/>\n<\/span><strong>Watch the recording:<\/strong> <a href=\"https:\/\/youtu.be\/68a0myhSOSU\">Managing Recurring Transactions | Rentec Direct Webinar<\/a><\/p>\n<hr \/>\n<h2>Recurring Tenant Charges<\/h2>\n<p>Recurring tenant charges account for things beyond monthly rent that are collected by the property manager or landlord.<\/p>\n<p><strong>Common recurring tenant charges include:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Pet fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Appliance rentals<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Flat rate utility charges<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Cable TV fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Internet fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\">HOA fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Common Area Maintenance (CAM) charges<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Renters insurance<\/span><\/li>\n<li><span style=\"font-weight: 400;\">HVAC filter replacements<\/span><\/li>\n<li>State or city tenant rent taxes<\/li>\n<\/ul>\n<h2>Other Recurring Charges (Property Charges)<\/h2>\n<p><span style=\"font-weight: 400;\">Renters are not the only ones who incur recurring charges in property management. The property itself will have recurring expenses that need to be charged to the property and accounted for properly. Recurring property charges are expenses that are typically paid by the property owner, either directly or by the property manager, and billed to the owner or deducted from the owner disbursement.\u00a0<\/span><\/p>\n<p><strong>Common recurring property charges include:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Taxes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Insurance premiums<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Monthly bank fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Mortgage payments<\/span><\/li>\n<li>Management fees<\/li>\n<li>Lawn maintenance<\/li>\n<\/ul>\n<h2>One-Time Fees<\/h2>\n<p><span style=\"font-weight: 400;\">One-time fees are common in property management. Most expenses a property incurs will be a one-time fee such as the cost for repairs and maintenance. Common one-time tenant charges include application fees, one-time pet fee, maintenance fee, re-key fee, key replacement fee, etc.<\/span><\/p>\n<h2>Frequency of Recurring Charges<\/h2>\n<p><span style=\"font-weight: 400;\">While rent payments are often charged each month, recurring transactions can take place on a weekly, bi-weekly, monthly, quarterly, or annual basis.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, internet and cable are often charged each month, while HOA fees might be charged monthly, quarterly, or annually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the frequency in which these fees are collected vary, it\u2019s vital that you have a clear system in place for tracking recurring charges and ensuring that the transaction is paid.\u00a0<\/span><\/p>\n<h2>Accounting Tips for Recurring Charges<\/h2>\n<p><span style=\"font-weight: 400;\">Some landlords and property managers simply group all these recurring tenant charges together and charge one monthly total to their tenants. This system works ok if you only have one or two additional recurring charges for your tenants, but it ultimately can become an accounting nightmare if you don&#8217;t properly document each tenant charge.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The easiest way to account for recurring charges is to use an automated system that generates tenant charges and calculates the total amount owed by your tenant for each billing period. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Property management software, like Rentec Direct, makes managing recurring charges a breeze and keeps your ledgers and accounting records in perfect order. With the help of the right rental accounting software, you\u2019ll eliminate manual entry, saving you time and the headache of discovering any data-entry errors.\u00a0\u00a0<\/span><\/p>\n<hr \/>\n<h2>Related Reading For You:<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/new-landlord-investor-start-tips\/\">Tips for Getting Started as a New Landlord or Investor<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/what-your-tenants-dont-know-the-true-cost-of-renters-insurance\/\">The True Cost of Renter&#8217;s Insurance<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/the-true-cost-of-renting-an-apartment\/\">The Real Cost of Renting an Apartment<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The most common, and obvious, charge in property management is monthly rent. This recurring payment is charged to tenants, often on a monthly basis, as outlined in the lease agreement.\u00a0 Beyond monthly rent, there are other common charges incurred by tenants that need to be accounted for each month. Things like monthly pet fees, utilities, [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":13650,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":14,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275,13882,13881],"tags":[15361,15360,15359],"class_list":["post-13642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-landlord-tips","category-property-management-tips","tag-property-charges","tag-recurring-transactions","tag-tenant-charges","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This 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