Without SimpleBills’ services, you are likely fronting the money for the entire property’s utilities on a monthly basis and waiting to be reimbursed by residents. If you’re familiar with this process, you know it can cause a lot of problems. Well. . . What if we told you SimpleBills did not require prefunding since all the billing and collecting is on us? Right now, you’re either thinking of all the things you can do with that freed up cash flow or wondering: ‘How does all of this work? That sounds too good to be true.’ Let us walk you through the basics.
SimpleBills’ model of resident billing isn’t tied to the rent cycle, so our typical turnaround time to send out invoices to residents is 1-2 days after receiving the utility bills from the provider. Compare this to the 30-45 days of floating resident utilities while waiting to get reimbursed by the residents on the ledger, and you’ll see why we do what we do. It’s a significant challenge to match expenses and offsetting revenue when the time between usage, paid bills and collected cash is such a long process. By following the utility provider bill more closely and invoicing the residents when the provider bills are available, it allows for easier accounting and frees up cash flow. It’s that easy. Now you’re not tied up waiting for reimbursements and you can spend your property’s money on the important things.
SimpleBills splits the utilities up into two buckets: property responsibility and resident responsibility. In terms of who pays what, the resident portion consists of 70-80% of the total cost for utilities while the property portion is around 20-30%. The property is responsible for vacant units and common areas. Simple enough. So what’s the kicker? Well, if you know anything about what we do, then you know that billing and collecting is our secret sauce. It’s what we do best! SimpleBills sends you one itemized invoice for that 20-30% of your property’s utilities. And that’s it. That’s all that comes out of the property’s expenses. Simultaneously, we invoice the resident and collect from the residents and pay all providers on time, ensuring utilities always stay on.
Take it from us, provider late fees aren’t cheap when you’re dealing with hundreds of units. Picture this: If your average provider bill for your property is $50,000 with potential for a 5% late fee, and you’re late just twice a year in paying these provider bills, that adds up to $5,000 in late fees in the blink of an eye. Are you sweating yet? Don’t worry! With SimpleBills, our services give you the huge advantage of being done with late fees forever! You have our word that all utilities will get paid to the provider on time, and if not, it’s on us!
To wrap it up, your job is just plain Simple without prefunding. No late fees, great cash flow and paying only your property’s portion of the bill is a luxury you deserve. Let us handle the utilities while you get back to doing your job!
To learn more about how our services can save you time, money and stress, visit https://www.simplebills.com/blog/properties/ or reach out and we’ll be happy to give you a demo.