Vacancy Credit

Understanding the vacancy credit will make the commercial janitorial process easier for the building contractor and the property management   company. This allowance, called a vacancy credit ensures property management do not pay for cleaning for unoccupied units.

The vacancy-credit rate usually is calculated by taking a predetermined price per square footage multiplied by the square footage of vacant tenant area that is not being serviced.

Keep in mind

Public areas, such as entryways, lobbies, restrooms, corridors, stairways and elevators, provide a visitor’s first impression of the building. The cleaning specifications for these high-visibility, high-traffic areas are more comprehensive than the specifications for typical tenant space.

It follows that these focal areas take more time to clean than comparable square footage of carpeted tenant space. Although public areas typically   account for just 10 percent to 20 percent of the buildings area, they can     account for 25 percent to 35 percent of the cleaning time. Therefore, the    actual price per square foot in public areas is higher than the price per square foot in tenant areas because of the increased cleaning time required.

In conclusion, the building service contractor’s overhead cost for administration, human resources, accounting, vehicles, etc., remain constant. As a result there is certain fixed costs including equipment, overhead, supervision and management, that are not directly tied to the building’s occupancy.

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