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:
- Set rent amounts for each employee/booth renter
- Set a day of the week for payment, or tie rent payments to your payroll schedule
- Deduct commissions from rent
- Have employees use their bank account (ACH, available in the US only) or credit card for payment
- Set up a backup payment method
- Require signing a rental contract as part of the employee setup
Related article: Employee Rent & Fees – Vagaro Pro app
This article covers:
- Configure Rent & Fees
- Add Employees
- Employee Profile – Rent & Fees tab
- Collect Failed Rent Payments
- Access Levels for Rent & Fees
Configure Rent & Fees
- Navigate to Settings > Employees > Rent & Fees.
- Toggle Recurring Rent to On (green).
- You can Deduct Commission from Rent by toggling the switch to On.
With 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.
Setting Deduct Commission from Rent on syncs the rent collection date to your payroll and cannot be changed.
- If you're not using Deduct Commission from Rent, select the day of the week for rent payments to be collected.
- Set the Next Rent Collection Date.
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, collection will start the next day.
- Toggle Require Employee Rent Contract to On 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.
- Select the Payment Method:
- Choose from Bank Account or Credit Card for the Primary Payment Method.
- If you want to require that employees provide a Backup Payment Method, toggle the switch to On.
- Add Employees.
See next section.
- Click Save.
About Payment Methods
The business must have Vagaro Merchant Services enabled for rent payments.
- ACH transactions from an employee's bank account are only available in the United States
- There is a 1% transaction fee charged for all ACH transactions
- Deposits via ACH can take up to 7 days to reach your account
- For employees using Vagaro Merchant Services (VMS), their VMS bank account information will be used, or they can change it
- The fee for credit card transactions depends on the type of merchant account
- Deposits for credit card transactions take up to 2 days to reach your account
Add Employees to the table on the Rent & Fees page to charge them rent.
- Click Add Employee.
- Select an employee from the drop-down list.
- Enter the amount of rent to charge.
- Select Request Employee Completion or Fill Payment Information.
Choosing Request Employee Completion sends an email and a notification to the employee.
If you have the employee with you, you can use Fill Payment Information.
- 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.
The Add Employee screen will show the following:
- For Request Employee Completion, that the request will include:
- Primary payment method (bank account or credit card)
- Backup payment method (bank account or credit card) – if configured
- Rent Contract - if required
- For Fill Payment Information:
- Primary payment method to fill in (bank account or credit card)
- Backup payment method to fill in (bank account or credit card) – if configured
- If you require a Rent Contract, the Fill Payment Information screen will show that the contract will be available for the employee to sign in their profile under Rent & Fees.
Employee Profile – Rent & Fees tab
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.
- Navigate to Settings > Employees > Employee Profiles, and click the Profile button for an employee.
- 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 employee yet, click the Charge Recurring Rent button to start the process.
- 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.
- 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 an employee's credit card or bank information, click the Action menu (3 vertical dots) and select Remove from Rent.
Note: The account owner and users with the Manage Employee Rent & Fees access level can delete bank or credit card information from an employee's profile but will have to send a request for the employee to provide new payment information.
Collect Failed Rent Payments
If an employee rent payment fails, the system notifies both the business owner and employee. The business owner receives an email and on-screen notification; the employee 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:
- Click Collect Payment from the More menu.
- 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.
You can use Cash, Check, or enter new credit card information.
- Click Collect.
The employee 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.
- Click Pay by Credit Card in the email or View in the on-screen notification regarding the failed payment.
- 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.)
- Click Pay.
Access Levels for Rent & Fees
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. To allow others to view and modify rent and fees, give them the Manage Employee Rend & Fees access level.
- Navigate to Settings > Employees > Access Levels.
- Click the More menu (3 vertical dots) on the employee type, and click Edit.
- Scroll down to Settings (the last section) and set Manage Own Profile to Modify.
- 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.
- Click Save.
The following reports now show Employee Rent & Fees:
- Employees / Rent & Fees (new)
- Sales / Transaction List
- Added column and summary screen entry for Bank Account
- Added Transaction Type filter for Rent & Fees
- Sales / Sales Summary
Added rows for Rent & Fees and Deducted Commissions
- Sales / Trends
Added column for Rent Charge
- Sales / Combined Report
- Employees / Payroll
Added column for Rent & Fees
- Employees / Payroll History
Added column for Rent & Fees
To run the new Rent & Fees report:
- Navigate to Reports > Employees > Rent & Fees.
- The report's date range defaults to the current month to date. You can select a different date range.
- Use the Employees drop-down selection to choose individual or all employees.
- Check the Failed Payments box to show only those in the report.
- In Advanced Filters, check the Include Past Employees box to include past employees in the report.
- Click Run Report.
The report shows the Payment Date, Employee, 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.