Multifamily Tenants Use 30% More Utilities When They're 'Free'

Kind of a no duh to apartment building investors but now we have actual data. If it's true that what is measured is what matters and what matters gets measured now there's a number to shoot at. In a MFE article out this week the results of a study by building intelligence provider WeGoWise showed that:

"[M]ultifamily buildings where owners pay utility bills use approximately 30 percent more energy (BTUs) per square foot than buildings where tenants pay utility bills. Additionally, the study found that annual utility costs for buildings with owner-paid bills are 20 percent higher than tenant-paid bills."

Now that wireless remote submetering systems are widely available at reasonable prices it's a good time to get your tenants paying for and reducing their utility usage. Here's a 1 minute video from one provider with the 30,000 foot view of submetering benefits for property owners.

Note that there are submetering systems available for water, gas and electricity so that tenants can have control over all their utility costs. Many of these systems are wireless and don't require any changes to wiring or piping systems to install. Especially where having the municipality or utility provider install separate meters is cost prohibitive (or impossible) these new systems can drive NOI growth without major capex costs.

Good hunting-