Learn more about the various allocation methods and best practices for each utility type.
Livable Pro supports three main methods for allocating utility charges: By Occupancy, By Unit, and By Square Footage (Sqft). Each method has specific uses and is often applied based on the type of utility and property characteristics. Below is a guide to help you understand each method and when to use it effectively.
1. By Occupancy
This allocation method divides utility charges based on the number of occupants in each unit. It ensures a fair distribution of costs where usage varies according to the number of people living in each unit.
Common Utility Types Used With This Method:
- Water and Sewer: Since water and sewer usage often increases with the number of residents, allocating by occupancy helps ensure equitable billing.
- Trash (Dumpsters): If the property uses a shared dumpster, trash charges are often allocated by occupancy, as more residents may generate more waste.
Other Examples:
- Shared Amenities: Any utilities or services used by all occupants, such as common-area maintenance or shared pool usage, can also be allocated by occupancy.
2. By Unit
This method allocates utility charges evenly among units, regardless of the number of occupants. It is commonly used for flat-rate services or situations where individual usage does not significantly impact the cost.
Common Utility Types Used With This Method:
- Trash (Toters/Cans): If trash service is provided via individual toters/cans per unit, charges are typically allocated by unit.
- Flat-Rate Charges: Utilities and services like Internet, Pest Control, or Cable TV are often allocated by unit since they tend to have consistent rates across units.
Other Examples:
- Maintenance Fees: Fixed property fees or periodic maintenance charges may also be allocated by unit if usage is consistent or irrelevant.
3. By Square Footage (Sqft)
This method allocates utility charges based on the size of each unit, making it ideal for situations where larger units may consume more resources.
Common Utility Types Used With This Method:
- Electricity and Gas: Larger units typically use more energy for heating, cooling, and other purposes. Allocating by square footage helps account for variations in consumption.
- HVAC Costs: If heating, ventilation, and air conditioning (HVAC) are shared among units, using square footage ensures fair distribution.
Other Examples:
- Building Maintenance Costs: Some properties allocate maintenance or repair costs based on unit size to reflect the impact larger units may have.
Choosing the Right Allocation Method
Selecting the appropriate allocation method depends on the utility type and your property’s unique characteristics. Using the right method ensures fair and accurate billing, leading to greater resident satisfaction and improved cost recovery.
If you have any questions or need further assistance in configuring your allocation methods, please reach out to our support team. We're here to help!
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