Settlement and distribution of common costs at a property
- the collection and registration of costs created by a property
- appropriate distribution of the collected costs between owners and tenants
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The collection and registration of property costs
The first step in the process of settling common costs is their registration, aggregation and suitable classification. The Cost Management Tool gathers these operations and transforms them into a single, ordered and automated process.
The system offers many functions for supporting the organisation and registration of data. For example, it is possible to create budget lines for an entire centre, which helps in the aggregation of costs under certain positions and facilitates access and control over particular cost groups.
In addition to this, the system helps control the flow of documents. Each step requires an acceptance procedure according to a strictly established order. Each acceptance then is given an individual code that allows for the identification of the authorised person in the system who issued the acceptance.
The system also allows for editing selected elements of a document at each individual stage of the process, as well as for the return of documents to the manager of a property in the case of a lack of acceptance or verification.
The next step after the registration and confirmation of documents is to distribute the collected costs among co-owners of the property and its tenants. This is one of the most difficult stages of the property management process, since it requires one to consider a large number of factors into the settlement. The given share of common costs on the part of tenants may differ depending on their type, floor area, assigned discount or settlement period (e.g. exclusion of some premises from service charges due to a renovation).
These processes have been defined and formalised to become the main part of the Cost Management Tool. The system covers any needs associated with the cost distribution process– from defining participation keys, to the automatic generation and dispatch of invoices with settlements to tenants or co-owners of the property. It is flexible enough to allow for modifications and a certain degree of personalisation. It is therefore possible to issue various types of invoices (e.g. divided into lines of participation concerning particular common costs), or introduce limitations on surcharges to annual service charges, often termed CAP.
For many years, the Cost Management Tool has supported settlement processes at properties with very different profiles of activity – from shopping centres or hotels, to office spaces and service centres. We have enjoyed many years of cooperation with clients such as Vastint (e.g. the Warsaw-based SwedeCenter, Business Garden in Poznań, Wrocław and Warsaw), Balmain (shopping galleries in Wrocław, Olsztyn, Starachowice and Poznań), and Ptak S.A., the owner and manager of several properties that constitute Europe’s biggest centre for trade and fashion – Ptak Fashion City.
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