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Billing Methodology Cheat Sheet

Use this guide to understand how utility charges are calculated and allocated to residents using different billing methods.

Written by Clayton Erekson

✅ Full Amount =

  • Each unit receives the full bill amount (no splitting).

  • Use when every unit should be charged the entire bill.

  • 📌 Example: $100 bill connected to 3 units → each unit is charged $100.

📐 SQFT =

  • Split by unit size (square footage).

  • Larger units pay a higher portion.

  • 📌 Example: $100 bill, units at 30, 30, and 40 sqft → charges: $30, $30, and $40.

👥 Actual Occupancy =

  • Split strictly by number of occupants (1=1, 2=2, etc.).

  • Each resident pays an equal share based on actual headcount.

🧮 Actual Mixed =

  • Averages Actual Occupancy and SQFT.

  • Formula: (Actual Occupancy charge + SQFT charge) ÷ 2

  • Balances people and unit size.

➗ Equal =

  • Divides bill equally among all connected units, regardless of size or occupancy.

  • Simple and fair when all units are similar.

  • Frequently used in student housing, when each bedroom is individually leased

✏️ Custom =

  • Allows manual percentage splits or 0% allocations.

  • Commonly used when:

    • The bill is paid by the property (not residents).

    • A unique split is required for compliance or preference.

  • Works like: (Full Amount) × (Custom % per unit)

👤 Ratio Occupancy = (Weighted-Rarely Used)

  • Uses a factored formula:

    • 1 occupant = 1

    • 2–3 occupants = 1.6 per person

    • 4+ occupants = 0.4 per additional person

  • Designed to soften cost impact for larger households.

⚖️ Ratio Mixed = (Weighted-Rarely Used)

  • Averages Ratio Occupancy and SQFT.

  • Formula: (Ratio Occupancy charge + SQFT charge) ÷ 2

  • Used when both size and occupancy need weighted influence.

🛏️ Bedroom = (Rarely Used)

  • Based on number of bedrooms, using a factored formula:

    • 1 bed = 1

    • 2 beds = 1.6

    • 3+ beds = +1.3 for each additional room

  • Reflects space usage, not headcount.

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