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Are billing-company fees passed through to residents?

Billing companies charge the property a monthly fee per unit. If leases allow a utility admin fee and it isn't charged, the owner absorbs it.

For: Owners and property managers using a billing company

Most utility billing companies charge per billed unit per month. Many leases let the owner pass that fee to residents as a utility administration fee; some states limit or regulate it.

The check

  • From the billing company's invoices, total the fees for the last 12 months.
  • From the billing reports, total the admin or service fees charged to residents for the same months.
  • If the second is far below the first, check what your leases and state rules allow.

Fixing it

  • Add the fee at lease renewal where the lease and local rules allow it.
  • Ask the billing company to confirm it is applied to every billed resident.
How Conduit helps

Conduit compares what you pay the billing company with the fees billed to residents and shows the difference per property.

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