Education

Reviewing the methods used to recover your utility expenses is also critical in uncertain times. Are your communities billing utilities back to the resident on a flat-rate basis, or are you utilizing a submeter or allocation method? Suppose you are billing utilities back on a flat rate method. In that case, you do not only risk under-recovering as utility rates increase at record levels, but you also miss out on the conservation benefits/cost reductions that sub-metered or allocation billing can provide you and your residents. Fannie Mae researched owners paying for all energy costs and found that median annual energy usage was 26% higher than when residents paid for their energy costs (Fannie Mae, 2014). Reviewing current utility billing solutions to ensure all eligible line items are being accurately billed back to your residents is also essential. It should be reviewed at a minimum on an annual basis. In my career, I have often seen multiple recoverable line items omitted from what is being billed back to your residents, which can lead to an excessive and avoidable financial burden.

A review of the ancillary fees, such as trash and pest charges, is also essential. Have you checked your recovery recently to determine if your flat rates are covering the expense you are currently paying? Have you considered allocating these charges to protect your recovery from the regular rate increases you are paying? An experienced billing partner can assist you in reviewing these on an annual or bi-annual basis to ensure the charges you are passing to your residents are sufficient to recover the costs you are paying.

Have you re-evaluated your billing/service fees recently? One of the most significant ways to positively impact your property income is to frequently evaluate the fees you are charging, what can be set, and how these compare to how other communities in your market are billing fees to their residents.

Finally, budget season is a great time to reflect on the quality and service you are receiving from your current utility management solution. Do they make serving you and bringing value to your communities a priority? How much workforce are your corporate and community level team members dedicating to services they should provide? The monetary expense of a poor service partnership is often overlooked.

Southwest Utility Solutions has experts available to meet with you and review your current utility management and resident billing solutions. We are experts in getting to know the companies/communities we partner with and working together to find the best solution for each of your communities to reduce your consumption and increase your recovery.

Works Cited

Energyprint. (2021, October 12). 5 Things To Look For In A Utility Bill Audit. Retrieved from Energyprint: https://www.energyprint.com/ resources/5-things-to-look-for-in-a-utility-bill-audit/

Fannie Mae. (2014, September). TRANSFORMING MULTIFAMILY HOUSING: FANNIE MAE’S GREEN INITIATIVE AND ENERGY STAR® FOR MULTIFAMILY. Retrieved from Fannie Mae: chrome-extension:// efaidnbmnnnibpcajpcglclefindmkaj/https://multifamily.fanniemae. com/media/6656/display

Leaver, S. (2022, September 27). What are the keys to 2023 planning amid uncertainty? Discipline and Precision. . Retrieved from Forbes: Leaver

NAA. (2022, September 12). Boosting Property Value Through Water and Energy Efficiency. Retrieved from NAA: https://www. naahq.org/boosting-property-value-through-water-and-energyefficiency

National Apartment Association. (2021, October 20). National Apartment Association 2021 Survey Of Operating Income & Expenses In Rental Apartment Communities. Retrieved from NAA: https://www.naahq.org/national-apartment-association-2021-surveyoperating-income-expenses-rental-apartment-communities