Help Center · Cost Allocation

What cost allocation methods are available?

When distributing building-level utility costs to tenants, you can choose from 5 allocation methods:

1. By Area (by_area)
Each tenant pays proportionally to their total rented area. If Tenant A rents 200 m² of a 1,000 m² building, they pay 20% of costs.
Best for: Standard commercial leases where area correlates with usage.

2. By Area × Hours (by_area_hours)
Similar to by-area, but factored by how many hours the tenant occupied the space during the billing period. Accounts for part-time tenants or mid-month move-ins.
Best for: Buildings with mixed occupancy schedules or frequent tenant turnover.

3. By Custom Factors (by_factors)
You manually set an allocation factor for each tenant (e.g., 0.35 = 35%). Factors should sum to 1.0 (100%) across all tenants. Factors can be "locked" (manually set) or "unlocked" (auto-calculated).
Best for: Lease contracts with specific cost-sharing agreements that don't follow area ratios.

4. Equal Split (equal)
Total costs are divided equally among all active tenants regardless of rented area. If there are 5 tenants, each pays 20%.
Best for: Small buildings or co-working spaces where all tenants have similar usage patterns.

5. Custom (custom)
Full manual control — you set exact amounts or percentages per tenant per cost type. No automatic calculation.
Best for: Complex lease arrangements with individually negotiated terms.

You can set different methods for different cost types. For example: electricity by area, water equal split, heating by custom factors.

Where to configure: Cost Allocation → select building → choose method per cost category.

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What cost allocation methods are available? | inbilit Help