How does common area cost allocation work?
Common areas are shared spaces in a building (lobbies, hallways, elevators, parking, restrooms) that are used by all tenants. The costs of these areas need to be distributed fairly.
Common area allocation methods
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Proportional to area (most common): Each tenant pays based on their rented area as a percentage of total rentable area. If you rent 20% of the building, you pay 20% of common area costs.
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Equal split: Costs are divided equally among all tenants regardless of rented area. Fair when all tenants use common areas equally.
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Custom percentages: You manually set what percentage each tenant pays. Useful for special agreements in lease contracts.
Common area meter handling
Meters with assignment_type = "common_area" track consumption in shared spaces. This consumption is:
- Excluded from tenant-specific meter views (since it's shared)
- Included in building-level totals
- Distributed to tenants based on the chosen allocation method
Common area factor
Each building local can have a "common area factor" (0 to 1) that determines how much of the common area costs it bears. A factor of 0 means the local doesn't contribute to common area costs; a factor of 1 means it bears a full share.
Vacancy cost sharing
When a building has vacant units, the common area costs for those empty spaces need to go somewhere. The vacancy_cost_share_pct setting (0–100%) controls this:
- 0% = the building owner absorbs all vacancy-related common area costs
- 50% = costs are split evenly between owner and existing tenants
- 100% = existing tenants pay all common area costs, including the vacant portion
You set this with the slider on the Cost Allocation page. It only appears when occupancy is below 100%.
Where to configure: Cost Allocation → select building → the "Vacancy Cost Sharing" slider appears when there are vacant units. Advanced Settings shows common area allocation rules per cost type.