About managing commercial properties in Palace

Summary

Discover how Palace streamlines commercial property management, from handling rent payments to managing operating expenses and using Bond Ledger accounts, ensuring efficient financial control.

This article covers:


How it works

There are several requirements for commercial properties:

  • The fees charged for commercial properties should be based on the portion of the rent that excludes GST.
  • Commercial rent receipts in Palace will automatically deduct the GST from the rent amount before calculating the management fees. Note that a fee of, for example, 10%, would result in a lower amount charged for commercial properties due to the GST component.
  • Most commercial properties are typically rented monthly rather than weekly.
  • Some tenants of commercial properties may require a tax invoice for each month's rent.
  • Some tenants may also need a tax invoice for the Opex (Operating Expense) component of their monthly payment.
  • All tax invoices will include the owner's GST number from the owner's record.
  • The Opex component may sometimes need to be held for payment of expenses instead of going to the owner.

When it comes to processing rent payments in Palace for commercial properties, it's essential to understand when and why to choose between Receipt - Rent and Receipt - Tenancy Invoice (applied to owner).

Receipt - Rent

This is typically used when you want to calculate the amount owed based on the paid-to-date, which is suitable for most residential tenants. However, for commercial properties, especially when managing a mix of commercial and residential tenants, the Receipt - Rent method might not provide the desired accuracy.

Receipt - Tenancy Invoice (applied to owner)

In such cases, it is a valuable alternative. This method allows you to raise charges for rent and other expenses, print invoices, and efficiently track the exact amounts owed by tenants, simplifying the management of commercial properties.

Streamlining Rent Receipts

When managing commercial properties in Palace, it's essential to streamline the rent receipt process. Most commercial properties have monthly rents, which can be set up in both the Rent Changes and Payment Details areas.

Palace automatically calculates the GST on each amount, making it easier to collect monthly rent and send automated receipts. In the Tenant area, there's an option to enable automatic rent receipt emails.

Managing OPEX Charges

Handling Operating Expense (OPEX) charges can be complex, especially when dealing with multiple commercial properties. Even if rents are receipted using Receipt - Rent, OPEX charges may still require separate processing using a Tenancy Invoice.

For OPEX payments received, the Receipt - Tenancy Invoice (applied to owner) option can be used to divert funds to a Bond Ledger account, if necessary. Keep in mind that withdrawals from this account typically require a Refund Bond Other transaction.

Conclusion - Managing commercial properties efficiently in Palace involves configuring property types, setting up tenants with monthly rents, and automating rent receipts. Additionally, Opex charges can be handled through the tenant diary, where you can set up repetitive charges, track them in tenant invoices, and efficiently process payments.

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