For Windows version of Entech Rental Management Software
If a property sells and you are to manage the unit for the new owner, follow the instructions below.
Before you begin let me explain the options you will have to choose from. Option 1 is used if no money (for a single reservation) needs to be split between the old and the new owner. For example, the unit sells 7/14/2002 and there is a reservation from 7/3/2002 to 7/13/2002 and the next reservation begins 7/15/2002. In this case the reservation from 7/3/2002 - 7/13/2002 will all go to the old owner and the next reservation will all go to the new owner. Option 2, however, is used in the case that there is a single reservation that will need to be split between the two owners. In our example above let's say the unit sells on 7/11/2002 instead of on the 14th. In this case the first reservation from 7/3/2002 - 7/13/2002 would have to be split. The old owner would receive the income from the first 9 days and the new owner would receive the income from the last 2 days. Be sure you know which option you will need to follow before you begin.
Option 1
If the selling owner is to receive all of the un-posted rental income go to the Accounting, Owners, Process Income. Set the default to release and start and end on the sold property. Enter the closing date as the exclusion date. Print an edit list to verify the commissions and any other related owner charges. If no changes need to be made, then select Post Rental Income and begin post.
From the Maintain, Databases, select Owners. Click on the "Add" button and enter the NEW owner’s information. Make sure you save the information. If the new owner is already listed as an owner, do not add him a second time.
Under Maintain, System Utilities, Property Utilities, select Change Property Owner. A pop up warning will be displayed. If you have been following the steps outlined here, you are ready to continue. Type in the OLD property code and select the new owner code. This process saves the old owners MTD/YTD totals under an "X" property, changes the original property’s owner code to the new owner code and zeroes out the MTD/YTD information in the original property. A NEW property record is added for the OLD owner because reservations are attached to the original property record which will soon belong to the NEW owner. The system will give you one last look at the changes being made. To accept the changes, click okay. If you see any errors, select no and begin this option again.
Changing the property owner will automatically set the "X" property to non-rental. After you have closed out the month and printed the necessary reports, you can make the "X" property inactive on the property record. Doing this will eliminate it from future reports.
Option 2
All of the income should be posted to the old owner. If the rental income needs to be prorated between the two owners, you can transfer the money from one owner account to another after the property is sold. Follow OPTION 1 to post rental income to old owner and sell the property.
Once the property has been sold, the money can be easily transferred using Owner charges and credits under Accounting, Owners, Owners Charges. Simply enter an account 13 for a negative amount to the selling owner’s account ("X" property) and enter an account 13 for a positive amount to the new owner’s account. Remember to also reverse the commission charge to the selling owner’s account and enter the charge to the new owner’s account (account 8 for a negative amount to the old owner and account 8 for positive amount to the new owner). Once these charges and credits have been entered be sure to post them to both owners accounts.
Example: A guest stays for 5 nights and the owner will receive $100.00 per night. On the third night the property is sold. The selling owner gets 3 nights or $300.00 and the new owner gets 2 nights or $200.00. The selling owner’s account has received all $500.00 dollars and we need to transfer $200.00. You would enter account 13 to the selling owner’s account ("X" property) for -$200.00. Also you would enter account 8 (10% commission) for a -$20.00. You should not charge the full commission to this owner because you are taking some of the money away. Then, to transfer the rental income, you would enter account 13 to the new owner’s account for $200.00. Also you need to enter the account 8 (10% commission) for $20.00. Once these transaction are entered then they need to be posted.