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How to deal with head agent commission for ongoing rent collected by a third party

Instructing an agent

In this scenario you instruct an agent to collect the rent and deduct commission on remittance to you. Arthur needs to connect the rent collected to the commission charged for that month and allocate them to one another so that monies received tie-up. ** For Xero users the final charge due from the tenant (care of the agency) will match monies received.

“Please note: Arthur manages commissions in two different ways. The first is when a head agent deducts commission at the source and sends you the rent less their commission. This scenario is covered here and uses the ‘Head Agent Commission’ code. The second scenario is when an agent sends you a bill for commission. Under this scenario, the commission is dealt with as a disbursement analyzed to the ‘Letting Commission Charge’ code and is paid by the Property Owner. It is entered as a transaction using the ‘Add transaction’ function.”


Step 1

Do NOT use the tenancy setup screen below to create the recurring. Simply remove recurring from this process and add from step 2


Step 2

Once tenancy created go to tenancy>recurring>add recurring for next collection date

**If you want to add retrospective rents with this connected transaction switch off the recurring first before saving. Then go to recurring use the filter to show disabled recurring. Go to dropdown>transaction and follow as below. Then edit the recurring switch back on. This will then lay in all historic rents with the connected charge


Step 3

Then go into the Recurring Charge>Transactions>Add Recurring Connected Transaction



Fill in the details, select Paid to/byTenant” and Save.



Step 4

Next, go to the tenancy statement in Tenancy>Statement>Tenancy Rent Statement



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