The analysis used individual homes as the units of observations and considered police records on the characteristics of burglaries and alarm ownership. In addition, a mailed questionnaire gathered information on both burglarized and nonburglarized homes. The analysis revealed that benefits included the avoidance of property losses and personal injuries from both burglary and fire, while the costs include installation and utility charges for the systems and police responses to false alarms. Findings suggested that township officials should redistribute fees collected from alarm owners to the townships police departments that bear the costs. Alarm-related collections can be used efficiently if two conditions. First, the fines should represent the real costs to the police department; this cost was $69.68. Second, the police department should receive all money associated with alarms and should use the amount to provide alarm-related services. Taking this action would reduce friction between the police and residential alarm owners. The police would at least break even and the public would benefit from the increased security provided by alarm installation. Otherwise, the police should transfer the task of responding to false alarms to private security firms, which would charge at least the true cost of providing this private service. Tables and 31 references