Handling Vacant Unit Bills
When a unit becomes vacant, its utility usage is automatically covered by you. There might be no utility usage, but sometimes the usage might remain limited or even full.
Defining the level of a vacant unit's utility usage:
Defining the level of usage is necessary for configuring a utility and another step toward making Ratio Utility Billing fair and accurate for residents.
Full usage:
The system will treat the utility as if it has been used normally, allocating 100% of the regular payment for the unit to the Property Owner or Property Manager.
What this looks like depending on the allocation method:
- By Occupancy: the bill will be allocated across all units with a defined occupancy count.
- By Square Footage: the bill will be allocated across the units based on each unit's square footage, with Full Usage; whether a resident lives in the unit or not, the bill will be allocated to this unit.
- By Unit: the bill will be allocated across the units equally, with Full Usage; whether a resident lives in the unit or not the bill will be allocated to this unit.
Tip: Full usage is most commonly used for utilities such as Trash, Pest Control, Common Area Electricity, Cable/Satellite, Internet, & Landscaping, where the bill rate does not change based on vacancies.
Limited usage:
Limited usage would result in partial charges. You must specify the percentage of the regular payment to which the unit should be allocated. The percentage should be between 10% and 90%.
What this looks like depending on the allocation method:
- By Occupancy: The bill will be allocated across all units that have an occupant, with the vacant unit receiving a specified percentage of the regular payment as specified by you during configuration.
- By Square Footage: The bill will be allocated across the units based on each unit's square footage, with the vacant unit receiving a specified percentage of the regular payment as specified by you during configuration.
- By Unit: The bill will be allocated across the units equally, with the vacant unit receiving a specified percentage of the regular payment as specified by you during configuration.
Tip: Limited usage is most commonly used for utilities such as Water, Sewer, Gas, Gas for Hot Water, and Electric, where the usage may still exist at a lower rate even when a unit is vacant.
Note: Even when a unit is vacant, some utility usage may still occur due to cleaning, showings, storage, maintenance activities, climate control, common area utilities, built-in appliances, or security systems, and this usage would not be the resident’s responsibility.
No usage:
Utility usage is not occurring when the unit is vacant, and you will not be charged. The bill will be split between occupied units only.
What this looks like depending on the allocation method:
- By Occupancy: The bill will be allocated across all units that have an occupant-defined occupancy count, excluding vacant units with an occupancy set to 0.
- By Square Footage: The bill will be allocated across the units based on each unit's square footage, excluding vacant units.
- By Unit: The bill will be allocated across the units equally, excluding vacant units.
Tip: No usage is most commonly used for utilities such as Water, Sewer, Gas, Gas for Hot Water, and Electric if these utilities are shut off during vacancy.
Note: In most cases, Trash needs to be allocated to vacant units. Ensure you review your local market ordinances when choosing your allocation method and setting your Vacant Unit Handling settings.
Livable does not provide legal advise, it is advisable that you always refer to local ordinances and discuss specific concerns and questions with your legal team.
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