For DAC7 reporting purposes, there may be situations where expenses are paid to owners that are not linked to a specific booking, but instead relate directly to a property. This distinction determines whether an expense is categorised as relating to personal services or to immovable property income.
Personal services: Where the cost is linked to the delivery of a service rather than the property itself. These are typically operational activities carried out to support an individual guest’s stay, such as cleaning between bookings, linen changes, check-in support, or other on-the-ground services provided on a per-stay basis.
Immovable property: Refers to income and expenses that relate to the ownership, rental, or upkeep of the physical property itself, rather than services provided to individual guests. This includes amounts associated with letting the property, as well as general maintenance, repairs, and ongoing costs that support the property as a whole.
Examples include: Cleaning or maintenance reimbursements tied to the property, Repairs and upkeep costs, Utility or service charges linked to the property as a whole etc.
In order to allocate fees to Immoveable property you must select a property when creating an expense via the Owner Commission Statement.
1. Go to Agency > Commission Statement
2. Select Commission statement next to the relevant owner
3. When recording an expense, select "Expense on behalf of owner", enter an amount and Assign a property:
4. Click Save.
When submitting your DAC7 report, these expenses will be assigned to immovable property. If the “Assign to property” field is left blank, the expense will be recorded under personal services.