With Vagaro's new automated Employee Rent & Fees feature, you can charge your renters, schedule recurring payments, and even deduct commissions from the rent you collect directly through Vagaro. That means fewer missed, failed, or unnecessary payments.
The Rent & Fees feature is intuitive, free, and gives you options to:
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Set rent amounts for each employee/booth renter
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Set frequency and day of the week to collect rent payments or tie rent payments to your payroll schedule
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Deduct commissions from rent
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Have employees use their bank account (ACH, available in the US only) or credit card for payment
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Set up a backup payment method
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Require signing a rental contract as part of the employee setup
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Provide 1099-MISC forms to renters
Related article: Charge Booth Renter Fees – Vagaro Pro app
This article covers the following:
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Navigate to → → .
If you haven't activated Rent & Fees for your business yet, the first thing you'll see will be the sales information page with a Get Started - Free button that you click to activate Rent & Fees.
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Once you've activated Rent & Fees, your first page will be the settings page with a Deactivate button to use if you want to stop using the feature.
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You can Deduct Commission from Rent by toggling the switch to On.
After Toggling Deduct Commission from Rent on, the system deducts employee commissions from the rent due, and they pay the difference.
Click OK in the pop-up confirmation dialog.
Toggling Deduct Commission from Rent syncs the rent collection date to your payroll and cannot be changed.
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If you're not using Deduct Commission from Rent, set up the frequency for rent payments to be collected.
Choices for Charge Frequency are:
With Weekly and Every Other Week, you can select the day of the week to process the charge.
With Twice A Month frequency, the renter is charged on the 15th and last day of each month.
For Monthly frequency, the charge is processed on the last day of each month.
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Set the Next Rent Collection Date.
Available dates depend on which Charge Frequency you've set.
Note
The Next Rent Collection Date defaults to the next available day. If you set the day of the week to Monday ON a Monday, the next date will default to the following Monday. If you set it to Tuesday on a Monday, the collection will start the next day.
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Toggle Require Rent Contract if you want to have them sign a rental agreement as part of the process.
Vagaro Forms is required to use this feature and has a built-in Rental Contract form for you to use, or you can create your own rental form.
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Select the Payment Method:
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Select Bank Account or Credit Card for the Primary Payment Method.
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If you want to require that renters provide a Backup Payment Method, toggle the switch to On.
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Add Renters.
See the next section.
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Click Save.
Note
You can disable recurring rent for all employees at any time by toggling the switch off. Employee payment information is saved until you manually delete it. If you disable rent, you'll have to confirm on the Disable Recurring Rent dialog box.
The business must have Vagaro Merchant Services enabled for rent payments.
Bank Account
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ACH transactions from a renter's bank account are only available in the United States
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There is a 1% transaction fee charged for all ACH transactions
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Deposits via ACH can take up to 7 days to reach your account
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For employees using Vagaro Merchant Services (VMS), their VMS bank account information will be used, or they can change it
Credit Card
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The fee for credit card transactions depends on the type of merchant account
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Deposits for credit card transactions take up to 2 days to reach your account
Add Renters to the table on the Rent & Fees page to charge them rent.
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Click Add Renter.
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Select a renter from the drop-down list.
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Enter the amount of rent to charge.
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Select Request Renter Completion or Fill Payment Information.
Selecting Request Renter Completion sends an email and a notification to the employee.
If you have the renter with you, you can select Fill Payment Information.
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Click Save or Send Request.
About Payment Date Timing
If a business sends out a request for information to a service provider, ex. Sep 1, and then the service provider does not fill out the information until Sep 10 and misses the weekly rent payment date of Sep 6. When the service provider fills out their information on Sept 10, they'll also be charged on that day for the missed rent of Sep 6. And after their payment will be taken on the regular rent cycle on Sep 13.
Note: If the business changes the rent charge frequency, unpaid rent from renters with "Pending Request" status will not be collected.
The Add Renter screen will show the following:
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For Request Renter Completion, the request will include:
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Primary payment method (bank account or credit card)
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Backup payment method (bank account or credit card) – if configured
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Rent Contract - if required
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For Fill Payment Information:
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Primary payment method to fill in (bank account or credit card)
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Backup payment method to fill in (bank account or credit card) – if configured
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If you require a Rent Contract, the Fill Payment Information screen will show that the contract will be available for the renter to sign in their profile under Rent & Fees.
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With the access level of Manage Own Profile set on, employees can click the Rent & Fees tab on their profile. On the Rent & Fees tab, employees can also view a table with their rent payment history.
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Navigate to → → ., and click the Profile button for an employee.
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Click the Rent & Fees tab.
The first portion of the screen shows the rent amount, charge frequency, and the next rent collection date.
Note
If you haven't set up a rent option for the renter yet, click the Charge Recurring Rent button to start the process.
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If the employee has not yet signed their rental contract, it shows as Pending, displaying the entire contract with a signature box at the end.
If the employee has signed the contract online, the screen displays a hyperlink with the signing date to view the contract with signature.
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Payment Method shows the bank account and credit card information on file for the rent payments (one or both, depending on whether a backup payment method is required.)
To remove a renter's credit card or bank information, click the Action menu (3 vertical dots) and select Remove from Rent.
This action completely removes all payment methods and rent charges for the employee. Only their payment history remains. Add the employee to Rent & Fees again to get new payment information.
If a rent payment fails, the system notifies both the business owner and renter. The business owner receives an email and on-screen notification; the renter receives an email, text, and on-screen notification.
The business owner can collect payment from two screens: Employee Profile > Rent & Fees page or the Rent & Fees report.
The following steps work from both options:
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Click Collect Payment from the More menu.
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In the Collect Payment pop-up screen, select a new payment method.
You can edit the payment amount if you want to add a fee, for example.
Select Cash, Check, or enter new credit card information.
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Click Collect.
The renter can pay the rent due by credit card, either from the notification or email they receive. Both open the Pay by Credit Card pop-up.
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Click Pay by Credit Card in the email or View in the on-screen notification regarding the failed payment.
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Select a saved credit card or enter a new one. (If entering a new credit card, you can select to save it to your profile.)
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Click Pay.
For employees to be able to manage the Rent & Fees tab on their Profile, enable Manage Own Profile on the access level for the employee type.
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Navigate to → →
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Click the More menu (3 vertical dots) on the employee type, and click Edit.
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Scroll down to Settings (the last section) and set Manage Own Profile to Modify.
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To give employees the ability to view or modify rent and fees, scroll to the end of the Settings section and change the settings for Manage Employee Rent & Fees.
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Click Save.
The following reports now show Rent & Fees:
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Employees / Rent & Fees (new)
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Sales / Transaction List
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Added column and summary screen entry for Bank Account
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Added Transaction Type filter for Rent & Fees
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Sales / Sales Summary
Added rows for Rent & Fees and Deducted Commissions
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Sales / Trends
Added column for Rent Charge
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Sales / Combined Report
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Employees / Payroll
Added column for Rent & Fees
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Employees / Payroll History
Added column for Rent & Fees
To run the new Rent & Fees report:
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Navigate to → .
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The report's date range defaults to the current month to date. You can select a different date range.
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Use the Renters drop-down selection to choose individual or all renters.
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Select options in the Status drop-down list to show only those in the report.
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In Advanced Filters, select Include Past Renters to include past renters in the report.
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Click Run Report.
The report shows the Payment Date, Renter, Rent Amount, Amount Paid (after commissions are deducted), and Status. Click the hyperlink under Amount Paid or the More menu (3 vertical dots) and View Details for a breakdown of the rent payment.
Renters who pay over $600/year in rent will need to download a 1099-MISC to use when filing their tax returns. Businesses also have a version of the 1099-MISC to use when filing taxes.
For an employee to download their own forms, they must have the Access Levels Manage Own Profile set. Only the Business Owner can view and download all employees' 1099-MISC forms.
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Navigate to → → , and click the Profile button for an employee.
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Click the Rent & Fees tab.
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Scroll down to the Payment History section, and select the 1099 tab.
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Click the Action menu (3 vertical dots) for the year you want and select View Renter 1099.
You can also edit the 1099 form and view/download the Business's 1099 form from this menu.
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In the preview of the 1099 form (browser dependent) you can print or download a copy of the form. Close the Preview pop-up when you're done.
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There is also a link to Download All 1099s. Use it to download 1099s for all available years for Renters or Businesses.
Only Business Owners can view and download 1099s for all employees from the Rent & Fees page.
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Navigate to → → .
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Scroll to the end of the page and select the 1099 tab under Renters.
From here, you can view or download individual or all 1099s for Employees or the Business.
Individual Employees:
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Click the Action (3 vertical dots) menu for an employee and select View Renter 1099 or View Business 1099.
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Download the form from the preview window.
This option uses the browser's "download/save as" function.
All 1099s
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Click Download All 1099s.
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Click Download Renter 1099s or Download Business 1099s.
Note
If there is information missing for a 1099, the Status column in the 1099 list will display an Information Required link:
Click this link to open the edit 1099 box and provide the missing information.
1099s with missing information will not be included when using the Download All 1099s option.
If an employee has paid under $600/year in rent, there will be no 1099, and the following message will display:
Comments
4 comments
Hi, is there anyway that we can set them up by commission base instead of a set amount?
Not right now, Christina. You could add this as a suggestion as a new feature request.
Is there a way to make this commission based instead!!! It would be a lot simpler for me if Vagaro had a feature where the employee get a percentage that’s we pay them that way and we the company keeps the rest! Like for membership sales or rent!
Aurren: Since collecting Rent & Fees is a relatively new feature, I'm sure there will be improvements and changes in the future. Please check the feature request pages and either enter your request or up-vote an existing one that matches what you want to see.
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