Real Estate Investor · Member since 2008 · 340 posts · 34 votes
Never thought I’d write a post about water conservation, but the I have noticed a trend that is affecting our bottom line.
Some back story. While we require some of our tenants to pay their water bill, not all of them do and on our multi units we pay the water and sewer bills.
In the past two years our water and sewer costs have gone up in a very noticeable way. So much so, that it is effecting our expenses ratio and we are actually considering moving to another secondary market. Between property taxes and this latest issue with water prices, are bottom line is getting thinner.
Which leads me to my question. How do you landlords contain water and sewer costs? Any simple (cheap) or green technologies that you use. If your tenants pay for all of the water expenses, what is your process and how do you enforce payment?
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
Matt,
I had this problem on a building and discovered a freeze break that was raising my bill by about 300%. I have a check system I go through.
First - Check your water bills and see if your usage isn't going up. Usage of water increases your sewer bill. Even gradual increases in usage warrant an inspection to see if you have a pipe leak.
Second - go to Walmart and get the $3.50 "Navy" shower heads. They significantly decrease the amount of water used.
Third - replace any old internals of toilets in your buildings. It's a $24 kit and a half hour of labor to do a complete internals replace. A flapper that didn't close completely cost me about $200 in water costs over a couple months before I caught what was doing it.
Fourth - check the faucets to make sure they aren't leaking.
Fifth - make sure there aren't any unauthorized appliances.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
Matt,
I had this problem on a building and discovered a freeze break that was raising my bill by about 300%. I have a check system I go through.
First - Check your water bills and see if your usage isn't going up. Usage of water increases your sewer bill. Even gradual increases in usage warrant an inspection to see if you have a pipe leak.
Second - go to Walmart and get the $3.50 "Navy" shower heads. They significantly decrease the amount of water used.
Third - replace any old internals of toilets in your buildings. It's a $24 kit and a half hour of labor to do a complete internals replace. A flapper that didn't close completely cost me about $200 in water costs over a couple months before I caught what was doing it.
Fourth - check the faucets to make sure they aren't leaking.
Fifth - make sure there aren't any unauthorized appliances.
Fortunately, I no longer own any properties where I get billed for the water if the tenant doesn't pay. When I did, I had the tenant pay their own water and then I checked with the water company monthly to make sure the tenant paid the water. If they didn't, I sent them a written notice that I would evict them if the water wasn't paid promptly.
Unfortunately, the local sewer gets charged to the landlord if the tenant doesn't pay (and they don't have too much motive. What's the city going to do? Cut off their sewer access?). There is a gigantic late fee if the bill isn't paid, so I just keep the sewer in my name and make sure it's paid. At least it's flat rate.
Our fine city has discovered that they can raise sewer and water fees to increase their income without getting voter approval of a tax hike-- so that is what they have been doing every time they turn around. Not much can be done about that. Going to town hall meetings and protesting hasn't slowed them down.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
17y
I don't pay water with my rentals -- except in the form of runoff fees tacked onto the property taxes. The city takes aerial photos and calculates runoff from the square footage of your roof and any paved areas.
Real Estate Agent · In Illinois, IL · Member since 2008 · 7 posts · 0 votes
17y
Do what I say.. since I am your father..er, I mean Property Manager!
Have the tenants pay their own bills, and decrease the rent by 25.00.. they will think they are getting a deal, and you will still be getting an increase of at least 25.00 per month.
Problem solved. and Since I am your pitbull, I will be the bad guy if the bills don't get paid. Ta da!
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
17y
Originally posted by Dusty Contreras:
Do what I say.. since I am your father..er, I mean Property Manager!
Have the tenants pay their own bills, and decrease the rent by 25.00.. they will think they are getting a deal, and you will still be getting an increase of at least 25.00 per month.
Problem solved. and Since I am your pitbull, I will be the bad guy if the bills don't get paid. Ta da!
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
17y
BTW, I have been doing some research regarding this issue and I'm looking to maybe replace some hardware with stuff like:
Replace toilet internals
Example: Fluidmaster® Complete Toilet Tank Repair Kit
Replace shower head to a low-flow shower head
Example: ACE Hardware Whedon® Deluxe Ultra Saver Shower With Push Button (USB4C)
Example: http://www.usalandlord.com/ul15gpm.html
Replace all kitchen and bathroom facets with a low-flow aerator
Example: http://www.usalandlord.com/5gpmfaae2.html
I know that you can go crazy by spending more money and install stuff like tank-less water heaters and dual-mode flush toilets, but that starts to get expensive. Something tells me that a tenant would destroy those items before a positive ROI kicks in.