{"id":13790,"date":"2020-07-30T13:53:59","date_gmt":"2020-07-30T20:53:59","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=13790"},"modified":"2020-08-11T14:00:15","modified_gmt":"2020-08-11T21:00:15","slug":"multi-property-owner-contributions","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/multi-property-owner-contributions\/","title":{"rendered":"Simplified Owner Contributions for Owners with Multiple Properties"},"content":{"rendered":"

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A new update to your Rentec Direct property management software now provides a streamlined system for providing owner contributions to properties with a negative balance as you process your standard owner distributions.<\/span><\/p>\n

You will have the option to automatically bring a property to a positive balance with an owner contribution as you process owner disbursements.<\/span><\/p>\n

This feature was first released to the <\/span>Rentec Insiders<\/span><\/a> (our beta testing group) a few months ago and the feedback from property managers has been immensely positive. We are pleased to hear that this new feature saves a ton of time when paying owners with multi-properties. And now the update is available to all Rentec Direct property managers!<\/span><\/p>\n

We’ll walk through the process of just how this feature works below, and why you are going to absolutely love it!<\/span><\/p>\n

Owner Contributions for Multi-Property Owners<\/h2>\n

First, let’s say you are managing the portfolio for Mr. John Smith and he has two properties. <\/span>
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\n<\/span>One of Mr. Smith\u2019s properties (411 4th St) had a massive repair last month that not only exceeded the rental income but dwindled the reserve, bringing the property balance down to negative $100.\u00a0 As a property manager, we never let properties go into the negative, so this is something we want to fix immediately.<\/span><\/p>\n

Previously, the cleanest ways to handle this would have been to post offsetting transactions to both property ledgers to show a transfer of funds from one property to cover the loss for the other property — or have the owner send in a check. Both options required a fair amount of work.<\/span><\/i><\/p>\n

Now, with the updated owner distribution wizard, it couldn’t be easier!\u00a0\u00a0<\/strong><\/p>\n

When sending Mr. Smith his distribution, simply enter a negative value into the property that needs funding. This then modifies the outgoing payment to the owner automatically and posts the appropriate entries on the property ledgers.\u00a0 <\/span>[ Note: within this tool positive values = owner distributions and negative values = owner contributions ].<\/span><\/i>\u00a0 <\/span>
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\n<\/span>So for example, using our scenario above, we want to bring 411 4th St back to a positive balance of $250 to meet the property reserve requirement. To do that, we post -350.00 on the property line. <\/span><\/p>\n

The owner will then receive an ACH payment of $4,147 instead of $4,497. And entries are now automatically added to the property ledgers and reports:<\/span><\/p>\n

7\/23\/2020<\/span> ACH<\/span> 123 Rocket Place:\u00a0 <\/span> $4,497 Owner Distribution<\/span><\/p>\n

7\/23\/2020<\/span> ACH<\/span> 411 4th St:\u00a0 <\/span> $350 Owner Contribution<\/span><\/p>\n

This works with any kind of disbursement: check, print check, or ACH.<\/span><\/p>\n

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New updates to the Pay Owners feature of your Rentec Direct account allow you to easily move a negative property balance into the positive while completing your owner distributions.<\/p><\/div>\n

Important Settings Update to the New Owner Disbursement Wizard<\/h2>\n

It\u2019s important before you begin using this new enhancement to head over to the <\/span>Settings<\/strong> tab and choose <\/span>Accounting Defaults<\/strong> and set a ‘<\/span>Default owner contribution category<\/em><\/strong>‘.\u00a0 That category will be used for categorizing these contributions.<\/span><\/p>\n

Owner Contributions and Owner Distributions<\/h2>\n

To learn more about Owner Contributions or Owner Disbursements with the Rentec Direct Pay Owner Wizard visit these helpful articles in the Knowledge Base.\u00a0<\/span><\/p>\n