How Management Fees Adjust for Refunded, Voided, or Bounced Payments

When managing tenant payments, you might encounter scenarios where payments are refunded, voided, or bounced. Property Matrix is designed to handle these situations gracefully, ensuring management fees are calculated accurately and fairly, without double-charging.

Here's a clear breakdown of this process:

A tenant makes an ACH payment, and it initially settles successfully.

Management fees are calculated based on settled tenant payments, including the payment just made.

After management fees have been calculated, the tenant's payment bounces. In Property Matrix, this is recorded as a refund transaction on the tenant’s account.

The tenant makes a second payment to replace the bounced one.

When management fees are next calculated, Property Matrix automatically detects the previously bounced/refunded payment and adjusts accordingly. The initial management fee calculation is recognized, preventing the company from being charged again for this second payment. Although this article shows a screenshot of the Calculate Fees page, this adjustment logic is also applied when automated fee calculations are performed.

This adjustment ensures no double charges or confusion occur. Instead, the management fee is effectively transferred from the bounced payment to the replacement payment.

This same adjustment logic also applies when payments are manually refunded or voided within Property Matrix. Any management fees associated with those payments will automatically adjust during the next calculation cycle, ensuring accurate and fair fee assessments.