Words of Wisdom TC v NTC

Click below to watch a brief conversation with Angel Santana, Community Manager of Parkwood Apartments, on the topic of expense allocation for move-out statements. Angel is a proven leader and successful trainer within the organization. She has trained many of our team members, several of whom were promoted thanks in part to the solid guidance they received from Ms. Santana.

What is TC vs. NTC?

TC stands for Tenant Charge: This classification is applied to the expense or portion of the expense that will be charged to the customer. This most often applies during the move-out process when the unit is being returned to 'rent-ready condition.' However, we also see expenses that occur during a customer's tenancy that may qualify as a TC. For example, if a customer breaks a window, the expense associated with that repair would be labeled as TC and the charge applied to the customer's ledger.

NTC stands for Non-Tenant Charge: This classification is applied to the expense or portion of the expense that will be absorbed by the community. For example, if a customer lived in a unit between 4-5 years, and the carpet had to be replaced, the customer would pay 40% (T/C) and the property would pay 60% (NTC). These expenses impact the property's budget performance in areas such as Cleaning and Painting, Repairs & Maintenance, and Supplies & Miscellaneous.

There are worksheets that break down TC costs for move-out statements. The most up to date version of these worksheets can can be found by clicking here or by visiting the Training Opportunities, The More You Know Group on Team GSF Connect.

Other important notes:

Deadline for the Estimated Move-Out Statement to Corporate/District:

Best practice is not later than 48 hours.

Requirement is not later than 6 days.

Why? The legal requirement is to have a Statement of Disposition (Move-Out Statement) to the customer within 21 days. Once the move-out is turned into Corporate/District, it must be reviewed, then it is passed along to accounting for a check to be cut, all before it is mailed out. To ensure we do not miss the 21 day deadline, the sites must follow the best practices and requirement timelines as outlined above.

Deadline for Revised Move-Out Statement to Corporate/District:

Not later than 6 days after the final invoice has been received.

Enjoy this conversation with Angel Santana on the topic of TC v NTC and move-out statements.

Words of Wisdom from Angel Santana

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