Overview
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Purpose: This guide provides a step-by-step process for generating, configuring, and finalizing property management contracts (agreement between a property owner and a management company to clearly define responsibilities, billing terms, and operational expectations) in Revela.
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Target Audience: Property managers, property owners, and administrative teams.
Step-by-Step Instructions
Generating a Management Contract
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Navigate to the Contract Setup:
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Click "Actions" and select "Management Contract."
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Review the Initial Window:
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This screen provides an overview of the management contract setup before entering details.
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Configuring Contract Details
Duration of Management:
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Set start and end dates for the management agreement.
Properties to Manage:
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Select properties covered under the contract.
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Add new properties with customized start and end dates.
Reserve Amount:
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Configure reserve funds to cover emergencies and unexpected expenses.
Manager Fees:
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Specify the monthly base rate for management services.
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Define additional charges, such as rent collection fees (e.g., 20% of rent collected).
Lease Billing Terms:
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Set fees for new leases and lease renewals.
Maintenance Fees:
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Define the markup percentage for maintenance services and materials purchased.
Establishing Approval Terms
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Set approval requirements for high-cost expenses (e.g., expenses exceeding $200).
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Determine whether owners must approve invoices before payments are processed.
Additional Fees and Collections
Configuring Additional Fees:
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Assign GL codes and define any extra fees (e.g., pet deposits, admin fees).
Handling Collections & Month-End Processes:
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Set up automated services for collections communications (e.g., letters, emails).
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Specify whether owners will be charged for sending demand letters or eviction notices.
Property Cache Rebalance Status
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Determine whether the listed properties will be included in rebalance processes for asset allocation.
Finalizing the Management Contract
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Click "Update" to save the management contract details.
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A confirmation message will appear: “Management contract data successfully saved.”
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Review and edit details if needed.
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Generate a contract document for distribution to relevant parties.
Best Practices & Tips
✔ Clearly define billing terms and management fees to avoid disputes.
✔ Configure approval settings for high-cost expenses to ensure financial transparency.
✔ Regularly review and update contracts to reflect changes in portfolio management.
Common Issues & Troubleshooting
Issue 1: Contract Not Saving Changes
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Solution: Ensure all mandatory fields (e.g., start date, property selection) are completed.
Issue 2: Incorrect Billing Calculations
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Solution: Double-check that fees and percentages are set correctly under Billing Terms.
Issue 3: Owner Approval Not Required When Needed
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Solution: Verify approval thresholds and ensure expense limits are correctly configured.
Link to Video