As the multifamily market becomes more competitive, there isn't much room to move rents to compensate
for increasing expenses. Exploring different avenues to increase
ancillary income has become more important than ever.
More owners are turning to utility cost recovery programs as a way to increase their bottom line, and as a way to leverage against unforeseen utility price increases. The recent dramatic price increases of gas, electric and water have caught many owners by surprise. With the market being so competitive that rent increases are all but out of the question, owners and managers are being forced to find another way to recover increasing utility costs.
Submetering is the solution. This allows you to increase your bottom line dramatically, without increasing rent, which in turn allows you to remain more competitive and keep vacancy levels as low as possible.
While increasing your Ancillary Income and thus increasing your Net Operating Income (NOI), you are also protecting yourself against an operating expense that is very unpredictable and unstable. In addition, you are also helping to promote conservation and protect the environment.
The entire submetering process is handled by Energy Billing Systems. From installation to monthly billing, we will be there managing your portfolio every step of the way. This allows you to increase your ancillary income without having to waste valuable time in the process.
One very important advantage of submetering your property is the increase in property value. The following is a quick calculator to figure your approximate increased property value by submetering. Simply enter the number of units to be submetered, your average utility cost per unit, your local CAP rate and click “Calculate”.
As you can see, the increase in property value by submetering is VERY substantial. Not only do you increase your property value, you also increase your ancillary income, help control costs in order to keep rent competitively low and promote conservation.
One of the best qualities is that properties generally see a Return On Investment (ROI) within 6-18 months!
The depletion of our natural
resources is one of the most crucial issues facing the world today.
As natural resources become more and more scarce, the consumption
of our natural resources continues to increase. Over the next 20
years, the world's population will increase from 6 billion to an
estimated 7.5 billion, while the water supply will decrease by
one third. In addition, it is estimated that by the year 2025,
35% of the world's population will face water shortages. This disturbing
trend is one that demands immediate attention and action.
The good news is that we can all do our part to help ease the strain on our natural resources. Conservation is the responsibility of each and every one of us, and with continued awareness and attention to the issue, we can all help with the solution. While there is no single answer to solving such a challenging problem, there are simple steps that can be taken to help move towards a solution.
When individuals become responsible for their own utility use there is a significant savings through conservation. Utility consumption typically decreases because its use is regulated by the end-user (who then has an incentive to conserve). Studies have shown that utility consumption decreases between 15% and 35% when a consumer is paying their own bills. The Department of Housing and Urban Development as well as many natural resource organizations encourage utility cost recovery programs as an effective energy conservation method.
Check out our Simple Tips to help you cut down on your utility consumption.
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