Overseeing tenant billing processes takes a significant amount of time. Additionally, where humans complete the work manually, there is likely to be some level of error. Making errors with your utility billing, especially when it relates to tenants, can cause a snowball effect of problems. Using one of our tenant billing systems can help simplify your process, as well as increase your revenue. There are multiple options for tenant billing and we have the expertise to help you determine the best method for your business.
Ratio Utility Billing
How It Works
Ratio utility billing is a system that works by dividing utility bills based on specific factors. These are often done by percentages. The overall factors are usually the number of occupants, the total square footage of the unit, and the number of rooms in the unit. These can be divided for use with different utilities, as well. For example, you would likely want to use the number of occupants to distribute the water utility bill. More people likely mean more water consumption. Then, for utilities like the gas bill, you may choose instead to use the total square footage or the number of rooms. A larger building will require more gas to adequately heat.
Pros and Cons
Ratio utility billing is an effective, easy method for utility distribution. Unlike submetering, it doesn’t require specific metering equipment. This method is more fair than distributing utility costs equally across all of the residents. However, ratio utility billing doesn’t account for individual use. Someone who fails to conserve energy will result in everyone paying more, rather than just the individual paying for their own use. Additionally, these factors don’t always accurately reflect the percentage of energy each unit uses.
How it Works
Utility submetering makes use of metering equipment to monitor individual energy use. Then the utility bills are distributed to tenants accordingly. This is often the fairest method for utility bill distribution.
Pros and Cons
Utility submetering encourages tenants to practice energy conservation, because they will have to pay for their own use. It ensures that tenants only have to pay for the energy consumption that they are responsible for. However, utility submetering does require specialized equipment in order to operate.
The Benefits of Tenant Billing
Tenant billing significantly reduces the amount of time that you have to spend manually accounting for utility bills. These services help to automate the process. This can significantly increase tenant satisfaction, because it will help them feel like they have control over their living expenses. Additionally, tenant billing services eliminate the amount of error that can occur with your tenant billing processes.
Tenant billing services can provide many benefits to your business. It can help you increase your revenue and the satisfaction of your tenants. There are multiple options for tenant billing services. Here at Vitality, we have the expertise to determine the ideal method for you. To learn more about our tenant billing services and how they can benefit your business, contact us at Vitality Energy today!