Setting Up Management Fees
Setting Up Management Fees
To set up management fees:
Select Management > Management Fee Setup. If you are using universal navigation, click Management > Setup > Management Fee Setup.
Click New.
Complete the following fields:
Year: Will populate with the same year listed in the end date (To) field based on the fiscal period setup for the association. Once the management fee is saved, the year will automatically be selected.
Association: Search for and select the desired association.
Association GL Account/Management Company GL Account: Search for and select the association (expense account) and management (income account) GL account numbers.
From/To: Date Range. Contract start and end dates.
Minimum/Maximum Rates: Enter a minimum rate that the association must pay and a maximum rate that the association would pay no more than, if applicable.
Renewal: Toggle on to enable. There are two options for type of renewal:
To renew the same rate and terms as listed during the initial setup, enter a whole number in the second field to indicate the number of years for which the fee will renew. Leave the % for blank. For example, enter 2 for the existing management fee to appear on the Renewal screen for the next two years.
To have the fee increase by a specific percentage each year, enter a renewal percentage such as CPI in the first field and whole number of years in the second field.
Manager Hours/Rate: Enter the number of set hours worked, and hourly rate for onsite managers, if applicable.
NOTE: If manager hours and rate are variable, they should be entered through the addendum billing import (see Setting Up Addendum Billing).
On-site Fees: Enter a dollar amount, if applicable.
Monthly Rate: Enter a monthly rate that should be charged per unit, or a fixed rate for all units that should be charged monthly. If the monthly rate is per unit, also toggle on Rate Per Unit; otherwise, toggle on Fixed Rate.
Use Quarterly Counts: When enabled, billing uses the unit count as of the first day of the billing quarter rather than the current month. For example, any invoice generated between 1/1/2026 and 3/31/2026 uses the unit count from 1/1/2026.
Taxable: When enabled, applies the tax rate configured on the Association Information screen to the management fee.
Rate per Unit/Fixed Rate: Determine if the monthly rate is per unit or is a fixed rate. Both quarterly and monthly counts are determined by the homeowner status. Homeowner Statuses that have the No Mgmt Fee toggles enabled on the System > Drop Down Options screen are excluded from the counts. All other statuses are included. If you are using universal navigation, click Settings > General > Drop Down Options.
Special Rate Details: Determine unit rates per homeowner status, if applicable (e.g., Builder vs. Owner-Occupied).
Once the homeowner status is saved, the special rates may also be filtered by sections. For example, owner-occupied may be listed four times representing four sections with different rates.
Ensure that all homeowners statuses are set up in the Special Rate Details.
Additional special rates may be added or removed by clicking New or Delete.
NOTE: When adding a new homeowner status, ensure it is added to this setup for any association that uses special rates.
Tier Rate Details: Determine tier rates per homeowner count, if applicable.
Ensure that the counts include all anticipated units for the association (only five tiers are available).
Homeowner Statuses that have the No Mgmt Fee toggles enabled on the System > Drop Down Options screen are excluded from the counts. All other statuses are included. If you are using universal navigation, click Settings > General > Drop Down Options.
NOTE: If tiered rates are no longer needed for the association, submit a case to CINC Customer Support.
NOTE: Automatically records details of auto-renewal of the management fee contract when the renewal occurs. Additional comments may be added as needed.
Click Save: