Result of a/c discussion

There were no better answers to our current situation. There’s no way for us to know who to charge and who to credit; it’s a problem we inherited. People may like having their utilities rolled into their maintenance but this is the disadvantage right here. No one can figure out how to do the job sub-metering would do for us. The other big confusion was why tenants are getting a $15 charge and $40 credit at the same time for each a/c unit. The answer is in the previous blog post’s spreadsheet picture but the simple explanation is as follows:

Each year on January 1st, you agree to pay Luna Park $180 for each a/c unit you’re going to put in. Although Luna Park lets you pay in twelve installments, the $180 number is what matters. Pretend that you paid it all up front because it’s treated as if you did. That’s how much management expect that unit’s electricity to cost (which is very very low for the real world). The board worked out that if you’re forced to remove your a/c for all four hot months, you will get back $40 each month for a total of $160. That means on December 31st of that same year, you will have paid $180 and gotten back $160. That leftover $20 was for the other eight months you had the a/c line at $2.50 a month. Again, very very cheap.

That’s it, that’s why you get a charge and a credit at the same time. You have to pay that $180 over the whole year even though you will end up getting back $160 when it’s done. We know that it’s no substitute for air conditioning but there’s nothing we can do about that.