Simplify Complex Service Charge Management
Managing service charges for HOAs and condominiums involves tracking numerous shared expenses, calculating fair allocations, and providing transparent reporting to residents and boards. PropMan's automated service charge reconciliation eliminates spreadsheets and manual calculations, ensuring accuracy and saving hours of administrative time.
Key Features:
- Automatic Expense Tracking: Record all common area expenses with proper categorization
- Flexible Allocation Methods: Allocate by unit size, percentage ownership, or custom formulas
- Real-Time Reconciliation: See updated balances as expenses are recorded
- Detailed Reporting: Generate comprehensive reconciliation reports for boards and auditors
- Budget vs Actual: Track service charge budgets against actual expenses
- Resident Transparency: Residents can view their service charge breakdown online
- Year-End Adjustments: Easily calculate and apply surplus/deficit adjustments
Common Service Charges Managed:
Utilities
- Water & sewer
- Common area electricity
- Heating/cooling
- Gas service
Maintenance
- Landscaping
- Snow removal
- Pool maintenance
- Elevator service
Insurance & Fees
- Building insurance
- Management fees
- Legal & professional fees
- Administrative costs
Amenities
- Gym equipment
- Recreation room
- Security systems
- Common wifi
How It Works:
- Set Up Allocation Rules: Define how each expense type should be allocated (by square footage, unit count, or custom percentage)
- Record Expenses: Enter common area expenses as they occur, or import from bank feeds
- Automatic Allocation: PropMan automatically calculates each unit's share based on your rules
- Track Payments: Monitor which units have paid their service charges
- Generate Reports: Create detailed reconciliation reports showing all expenses and allocations
- Year-End Reconciliation: Calculate surplus or deficit and apply adjustments for the next period
Use Case Example: 50-Unit Condo Building
The Challenge:
A 50-unit condominium building has quarterly service charges covering utilities, maintenance, insurance, and management fees. Different expense types are allocated different ways:
- Utilities: By square footage
- Insurance: Equal share per unit
- Pool maintenance: Only pool-facing units (25 units)
- Elevator: Only units on floors 2+ (40 units)
The PropMan Solution:
Set up allocation rules once, then simply record expenses. PropMan automatically:
- Calculates each unit's share based on the appropriate allocation method
- Bills residents quarterly with detailed breakdowns
- Tracks payments and outstanding balances
- Generates year-end reconciliation reports showing actual vs budgeted expenses
Time Saved:
Manual Process: 8-10 hours per quarter
With PropMan: 30 minutes per quarter
Annual Savings: 30+ hours
Benefits for Different Stakeholders:
Property Managers
- Save hours on manual calculations
- Reduce allocation errors
- Generate reports in minutes
- Easy year-end reconciliation
Board Members
- Complete expense transparency
- Budget tracking tools
- Audit-ready reports
- Fair cost allocation
Residents
- Clear service charge breakdowns
- Online access to expense details
- Confidence in fair allocation
- Easy payment options