Has your company ever encountered concerns associated with collecting and paying the utility invoices for multiple locations? In addition, the inclusion of the VCR, where companies are required to bill the customer on the exact day the property is leased.
Property Management companies detect many hurdles on a daily basis with the management of the property, the applicable vendors, as well as tenants and their needs. This can be especially problematic and very costly when there are no strategic processes in place. Especially when the tenant or renter move unexpectedly and the utility services are still in recent tenants name when they take over. A property management company will experience the following problems if there is not a comprehensive plan in place to ensure this transition is completed in a timely manner.
- Time involved in contacting the tenant or renter to move the services into their name.
- Time involved in reallocating the master utility invoice with the number of days that belong to the tenant or renter.
- Lost money on days of usage that should have been billed to the tenant or renter, that cannot be recouped.
For instance, a Property Management Company had two properties, one with 48 apartments and the other with 83 apartments. They usually spent approximately 4-5 days each month going through the utility invoices trying to identify the tenant or renters that had yet to change the utilities into their name. The staff armed with the move-in/moveout schedule the staff would proceed to go through the electric, gas and water invoices identifying the meters that should have been billed to the tenant. Once they had the meter usage, they would then have to calculate the number of days against the actual usage and list the information on their monthly invoice to the tenant. All these supplementary tasks would cost their staff members valuable time each month to complete.
RadiusPoint identified the areas that were causing the issues with the time lost for the Property Management staff to run down the tenant or renter and the lost money involved with the inability to recoup the days billed by the utility that should have been acquired the day of move-in. RadiusPoint created the Vacant Cost Recovery (VCR) report that saves the Property Management company over 32 crucial man-hours each month and recoups 100% of all costs billed on the utility invoice that should have been billed to the tenant. RadiusPoint’s proprietary software, ExpenseLogic takes the move-in/move-out report on a weekly basis into the database. The monthly utility invoices are imported into ExpenseLogic and analyzed by meter against the unit or apartment number. The report is then created that shows the apartment number, meter number, the utility type, the number of days that should be billed to the tenant and the cost of the utility that should be billed to the tenant.
This Property Management company saved over $1,000.00 each month in countless man-hours exhausted. Also, this all-inclusive method lowered their utility expenses by 12% by rebilling the tenants. Our invoice audits, error identification and reconciliation produce a savings of over 25%, just imagine how much can be saved utilizing vacant cost recovery (VCR.)