Operating cost settlement
The operating cost settlement spreads the apportionable costs of a period over the units, offsets the advances that were paid and reports the balance per tenancy – a payment due or a credit.
What happens
- For every apportionable cost item the share of each unit is worked out, over the distribution key of that item.
- The share of a unit is split between the tenancies that occupied it – day exact.
- The advances of the period are offset.
- The balance per tenancy is settled.
A change of tenant during the year needs no special case
Because the split is day exact, each tenant's share follows from the number of days they were in the unit. If somebody moves out in July and the next tenant moves in in August, each gets their part – without intervention and without a side calculation.
The distribution keys
Every cost item is spread over one key:
| Key | Base value |
|---|---|
| Area | square metres of the unit |
| Units | an equal share per unit |
| Persons | number of persons in the unit |
| Co-ownership share | the share recorded in the land register |
| Consumption | the measured consumption of the unit |
The general consumption does not disappear
With the key consumption the main meter regularly measures more than the sub meters account for. That difference is the general consumption – stairwell, laundry, leakage. It is spread over everybody instead of falling through the cracks.
Vacancy stays with the owner
If nobody occupied a unit during the period, its share stays with the owner – it is not pushed onto the other tenants. That is as it should be: tenants are not liable for a neighbouring flat standing empty.
Which units take part
If a cost item names a settlement unit, it is spread only over the units of that unit. If it names none, it is spread over all units of the property.
That makes it possible to map costs affecting only a part – a lift that only serves the rear building, for instance.
What steers it
| What | Where |
|---|---|
| Units with area, persons and co-ownership share | unit |
| Building and property | building · property |
| Tenancies and advances | tenancies |
| Monthly charging | dues run |
What can go wrong
A unit receives no share
- Is it part of the settlement unit named in the cost item?
- Does it have a value for the chosen key – area, persons, co-ownership share? Without a base value no share can be formed.
The shares do not add up to the costs
Check the key: with consumption the general consumption belongs to it – without the main meter that part is missing as well.
A tenant receives a larger share than expected
The split is day exact. If the previous tenant only moved out at the end of January, they carry exactly those days – the rest lies with the next tenant. Check the periods of the tenancies.
The balance does not match the payments
What is offset are the advances of the period according to the tenancy. Payments the tenant actually made or failed to make are a matter for the accounts and not part of this settlement.