For each person that earns money from the reservations, you first need to create a Recipient and then define a Payment Strategy that tells the system how much should be paid to that specific recipient.
Read about:
- Understand the logic of recipient strategies
- Example of how to create a recipient strategy
- Delete a recipient
Understand the logic of recipient strategies
To understand the logic of the Owner statements module, you should keep in mind that the total of the money received from a reservation (after detracting OTA commissions) stands for 100% of the earnings from the booking. The revenue generated for any booking is separated into different concepts:
- Rental Price
- (cleaning) services
- Fees
- Taxes
💡 Note: Each of these concepts has its own total of 100%.
Typically, the revenue is split amongst different people (Recipients), and each recipient will earn a different amount from different concepts. These amounts/percentages will need to be indicated in the Strategy of each Recipient. To ensure the calculations are done properly, you need to make sure that the sum of all Recipient strategies for each of the concepts (of a given rental or group of rentals) adds up to100% of what has been received (after detracting OTA commissions).
Example of how to create a recipient strategy
To create a recipient and their payment strategy, you need to follow these steps:
- Go to your Main Menu in the top left corner and select PM Modules
- Click Owner statements from the left menu bar.
- Then choose Recipients.
- Click on the little + icon in the bottom-right corner to create a new recipient. Now fill in the recipient's name and basic information such as VAT information etc.
💡 Note: All legal information will be shown on the agency's invoice exactly as provided in this section, so make sure it is correct. - Then create a strategy that defines where the recipient should receive money from.
To understand the setup of the strategy, we will use an example:
🔎 Example: Let's say we charge a 12% commission (of the booking price) to our rental owners to manage their vacation rentals. The cleaning services, check-ins, and taxes are completely managed by the rental agency. The cleaning costs are charged to the guests on top of the rental price, and the check-ins are charged as a fixed cost of 25€ to the rental owner.
💡 Note: Don't forget that each Recipient needs a Strategy, and the sum of all Recipient strategies for one rental, needs to add up to 100% to ensure the calculations will be accurate in regard to the different billable concepts:
- Rental Price
- Taxes
- Fees
- Services
➡ You cannot leave 5% without assigning them to anyone, because then money will get “lost”. At the same time, you cannot assign (to all recipients together) more than 100%, because then more money will be “paid” to the recipients than was received by the reservation.
| Should receive money from ... | Strategy setup for the rental agency | Strategy setup for the rental owner |
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Bookings According to the example, the rental agency earns 12% of the booking price, this means that the rental owners earn 88% of the booking price. |
The default rental price strategy is the following: CAN earn money from bookings, 12% | The default rental price strategy is the following: CAN earn money from bookings, 88% |
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Fees According to the example, 100% of the earnings of the cleaning services go to the rental agency as they manage this service. This means that 0% of it goes to the owner. 💡 Note: It is common practice that cleaning costs are not charged separately to the guest. If this is the case, these costs would not be handled as a separate fee but would be handled as an expense like the check-ins. ➡ See Recurring Items setup below. |
The default fees strategy is the following: CAN earn money from fees, 100% | The default fees strategy is the following: CAN NOT earn money from fees, 0% |
|
Taxes If taxes are managed by the agency, it means that they earn 100% of it and the owner 0% |
The default taxes strategy is the following: CAN earn money from taxes, 100% | The default taxes strategy is the following: CAN NOT earn money from taxes, 0% |
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Recurring Items In the example, the check-ins are not charged separately to the guests, so they are not received as a separate fee by the system and are therefore handled as Recurring Items. Other examples of recurring items would be an alarm, Netflix subscription, pool maintenance, etc. As the check-ins are entirely managed by the rental agency, you will need to create a recurring expense for the rental owner of 25€ as a fixed cost per booking. Keep in mind that in addition to Fees and Expenses (both negative amounts), you can also set up two types of Recurring Items in positive amounts:
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⚠ Important: This is not an income from a booking (not paid directly by the guest) therefore there is no need to compensate this in the strategy of the agency.
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💡 Note: You can select if this item should be applied per booking or per statement, as well as for which rentals this expense applies. If you need the item to be a negative amount, simply add a minus before the number. |
Strategies allow a high level of customization. Feel free to play around with them as much as you want until you have a solid strategy for each one of your recipients. To learn more about setting up Strategy Exceptions, check out this article.
Delete a recipient
If you don't need a recipient anymore, you can delete it by following these steps:
- Go to your Main Menu in the top left corner and select PM Modules
- Click Owner statements from the left menu bar.
- Then choose Recipients.
- Click Delete and Yes, Delete.
When the recipient is deleted, none of the team members will retain access to it.
If the recipient has previous payments, you will still be able to view these payments and undertake certain actions.
Future scheduled statements will proceed to be generated seamlessly, but they will exclude the deleted recipient. However, previous payments associated with the deleted recipient remain unaffected, and future payments will not be generated.