Articles in this section

See more

Automatic Rent Collection with Vagaro - Vagaro Pro app

Avatar
Donna J
  • Updated
Follow

With Vagaro's automated Employee Rent Collection 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 Collection feature is intuitive, free, and gives you options to:

  • Set rent amounts for each employee/booth renter

  • Set frequency and day of the week to collect rent payments 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

  • Provide 1099-MISC forms to renters

Prerequisites

You must have credit card processing enabled to collect rent payments.

Navigation

This article covers the following:

Configure Rent Collection

  1. Navigate to More → Settings → Employees → Rent Collection.

    1_vpro_more_settings_2x.png
    3_emp_rent_coll.png

    If you haven't activated Rent Collection for your business yet, the first thing you'll see will be the sales information page with a Get Started - Free button that you tap to activate Rent Collection.

    vpro_rf_sales_page_2x.png

  2. Once you've activated Rent Collection, your first page will be the settings page with a Deactivate button to use if you want to stop using the feature.

    vpro_main_rf_2x.png

  3. You can Deduct Commission from Rent by toggling the switch to On.

    vpro_main_deduct_2x.png

    After toggling Deduct Commission from Rent on, the system deducts employee commissions from the rent due, and they pay the difference.

    Tap OK in the pop-up confirmation dialog.

    vpro_rf_conf_deduct.png

    Toggling Deduct Commission from Rent syncs the rent collection date to your payroll and cannot be changed.

    vpro_rf_deduct_2.png

  4. If you're not using Deduct Commission from Rent, set up the frequency for rent payments to be collected.

    Choices for Charge Frequency are:

    vpro_freq_selection_2x.png

    With Weekly and Every Other Week, you can select the day of the week to process the charge:

    vpro_freq_week_2x.png

    With Twice a Month frequency, the renter is charged on the 15th and the last day of the month.

    vpro_freq_2xmonth_2x.png

    With Monthly frequency, the charge is processed on the last day of each month.

    vpro_freq_month_2x.png

  5. 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.

  6. Toggle Require Rent Contract if you want them to sign a rental agreement as part of the process.

    vpro_rent_contract.png

    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.

    Note

    You cannot edit the form on the Vagaro Pro app.

  7. Select the Payment Method:

    vpro_rf_pymt_method_bank.png
    vpro_rf_pymt_method_cc.png

    1. Select Bank Account or Credit Card for the Primary Payment Method.

    2. If you want to require that renters provide a Backup Payment Method, toggle the switch to On.

  8. Add Renters.

    See the next section.

  9. Tap Save.

Note

You can disable recurring rent for all employees anytime by toggling the switch off. If you disable rent, you must confirm on the Disable Recurring Rent dialog box. Employee payment information is saved until you manually delete it.

vpro_rf_disable.png

About Payment Methods

The business must have credit card processing enabled for rent payments.

Bank Account

  • ACH transactions from a renter'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's credit card processing, their bank account information will be used, or they can change it

Credit Card

  • 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 Renters

Add Renters to the list on the Rent Collection page to charge them rent.

  1. Tap Add Renter.

    vpro_rf_add_renter.png

  2. Tap Select Renter.

    vpro_rf_add_rntr_top.png

    A list of employees not signed up for recurring rent displays. Tap one to select.

  3. Enter the amount of rent to charge.

  4. Select Request Your Renter Completion or Fill Payment Information.

    vpro_rf_add_rntr_bottom.png

    Selecting Request Renter Completion sends an email and a notification to the employee.

    vpro_rent_coll_notif.png

    If you have the renter with you, you can select Fill Payment Information.

  5. Tap 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:

  • For Request Renter Completion, 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 renter to sign in their profile under Rent Collection

Additional Information

Pause Rent Collection

You can suspend rent collection for employees from the Rent Collection page for renters who have provided their payment information.

  1. Select a renter from the list, tap the renter's chip, and select Pause Rent.

    vpro_renter_list_2x.png
    vpro_rf_emp_actions_2.png

  2. Tap Pause on the confirmation box.

  3. The chip for that renter will have a gray bar to indicate that rent collection is Paused.

    To resume collecting rent, tap Resume Rent on the same action menu.

Back Rent

When you pause and resume rent collection, the renter is charged for any rent that was due during the pause. To prevent the collection of back rent, choose Remove From Rent.

To resume collecting rent from an employee who has been removed from rent, you will have to re-add the employee to your Renters list complete with providing new payment information and asking them to sign a new Rental Agreement (if used.)

Employee Profile - Rent Collection tab

With the access level of Manage Own Profile set on, employees can tap the Rent Collection tab on their profile. On the Rent Collection tab, employees can also view a table with their rent payment history.

  1. Navigate to More → Settings → Employees → Employee Profiles., and tap the Profile button for an employee.

    1_vpro_more_settings_2x.png
    3_emp_profiles.png

  2. Tap the Rent Collection tab.

    vpro_rent_coll_tab.png

    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, tap Charge Recurring Rent to start the process.

    vpro_rent_coll_add_rent.png

  3. 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.

    vpro_rf_contract_pending.png
    vpro_rf_rent_sig_block.png

    If the employee has signed the contract online, the screen displays a hyperlink with the signing date to view the contract with the signature.

    rental_contract_link_2x.png

  4. 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.)

    vpro_rf_primary_pymt.png
    vpro_rf_backup_pymt.png

To remove a renter's credit card or bank information, On the main Rent Collection screen, tap a renter and select Remove From Rent.

The Renter has completed sign-up

vpro_rf_emp_actions_2.png

The Renter hasn't finished signing up

vpro_rf_emp_actions.png

This action completely removes all payment methods and rent charges for the employee. Only their payment history remains. Add the employee to Rent Collection again to get new payment information.

Collect Failed Rent Payments

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 Collection page (Payment History) or the Rent Collection report.

The following steps work from both options:

  1. Tap the failed payment block, and then tap Collect Payment.

    vpro_rent_coll_rpt_failed.png
    vpro_emp_prof_pymt_fail.png
    vpro_rf_failed_pymt_options.png

  2. 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.

    vpro_rent_coll_rpt_failed_collect.png

    You can select Cash, Check, or enter new credit card information.

    vpro_rf_rpt_failed_pymt_methods.png

  3. Tap 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.

    vpro_rent_coll_failed_notif.png

  4. Tap Pay by Credit Card in the email or anywhere in the on-screen notification regarding the failed payment.

    vpro_rent_coll_failed_emp_pay_cc1.png

  5. Select a saved credit card or enter a new one. (If entering a new credit card, you can also save it to your profile.)

    vpro_rf_failed_emp_pay_cc.png

  6. Tap Pay.

Access Levels for Rent Collection

For employees to be able to manage the Rent Collection tab on their Profile, enable Manage Own Profile on the access level for the employee type.

  1. Navigate to More → Settings → Employees → Access Levels.

    1_vpro_more_settings_2x.png
    3_emp_access_levels.png

  2. Tap the More menu (3 vertical dots) on the employee type, and tap Edit.

    vpro_access_level_edit.png

  3. Scroll down to Settings (the last section) and set Manage Own Profile to Modify.

    vpro_access_level_own_prof.png

  4. 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 Collection.

    vpro_access_lev_rent_coll.png

  5. Tap Save.

Reports

The following reports show Rent Collection:

Note

Not all reports are available on the Vagaro Pro app. The Rent Collection report is.

  • Employees / Rent Collection

  • Sales / Transaction List

    • Added column and summary screen entry for Bank Account

    • Added Transaction Type filter for Rent Collection

  • Sales / Sales Summary - rows for Rent Collection and Commissions (Deducted from Rent Collection)

  • Sales / Trends - columns for Projected Rent and Rent Charge

  • Sales / Combined Report - rows for Rent Collection and Commissions (Deducted from Rent Collection)

  • Employees / Payroll - column for Rent Collection

  • Employees / Payroll History - column for Rent Collection

To run the Rent Collection report:

  1. Navigate to More → Reports → Rent Collection.

    1_vpro_more_reports_2x.png
    vpro_rpts_rent_coll_2x.png

  2. The report's date range defaults to the current month to date. Tap Date Range to select different dates.

    vpro_rent_coll_rpt_date_1.png
    vpro_rent_coll_rpt_date_2.png

  3. Tap the Filters icon (settings.png)

    vpro_rf_rpt_filters.png

  4. Accept the default of All Renters or select individual renters.

  5. Toggle the switches to filter for Successful, Failed, or Pending Payments and to Include Past Renters.

  6. Tap Apply to run the report.

The report shows the Payment Date, Renter, Rent Amount, and Status (Paid, Pending Deposit, or Failed.)

vpro_rpts_rent_coll.png

Tap anywhere in a payment record to bring up the options of Collect Payment (on Failed payments) and View Details. In View Details, you can see the breakdown of commissions deducted from rent, if applicable.

vpro_rent_coll_rpt_details.png

Get 1099-MISC Form

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.

From Employee Profile Page

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.

  1. Navigate to More → Settings → Employees → Employee Profiles , and tap the Profile button for an employee.

  2. Tap the Rent Collection tab.

  3. Scroll down to the Payment History section, and select the 1099 tab.

    vpro_emp_prof_1099_tab_2x.png

  4. Tap the [year] Completed button and select View Renter 1099.

    vpro_emp_prof_sel_view_2x.png

    You can also edit the 1099 form and view/download the Business's 1099 form from this menu.

  5. In the preview of the 1099 form, you can print or download a copy of the form. Close the Preview pop-up when you're done.

  6. There is also a link to Download All 1099s. Use it to download 1099s for all available years for Renters or Businesses.

    vpro_download_all_2x.png

From Rent Collection Page

Only Business Owners can view and download 1099s for all employees from the Rent Collection page.

  1. Navigate to More → Settings → Employees → Rent Collection.

  2. Scroll to the end of the page and select the 1099 tab under Renters.

  3. Tap the button for the year you want.

    vpro_rent_page_1099_year_2x.png

Individual Employees:

  1. Tap the button for an employee and select View Renter 1099.

    vpro_emp_prof_sel_view_2x.png

    You can also edit the 1099 form and view/download the Business's 1099 form from this pop-up.

  2. In the preview of the 1099 form, you can print or download a copy of the form. Close the Preview when you're done.

All 1099s

  1. Tap the year you want.

  2. Tap Download All 1099s.

  3. Tap Download Renter 1099s or Download Business 1099s.

    vpro_rfpage_download_all_2x.png

If an employee has paid under $600/year in rent, there will be no 1099, and the following message will display:

vpro_not_req2_2x.png

This feature works best with

If you're using a rent contract with this feature, you must activate Forms for your business. See Create a New Form for more.

For more information

Automatic Rent Collection with Vagaro – Web Version

Related articles

Comments

0 comments

Please sign in to leave a comment.