Utility Rate Increases on The Horizon in 2021

By Emily Landes, Livable

Nationwide, property owners should expect across-the-board utility increases in 2021, with some jurisdictions expected to see double-digit rate hikes. According to a survey from the U.S. Energy Information Administration, rates have gone up six out of the last eight years. Natural gas prices are also expected to rise, with international markets willing to pay a higher rate for this U.S.- produced energy source.

Water rates vary enormously depending on the area, but no matter the municipality, over the long-term rates are up substantially from an average of $39 a month in 2001 to over $100 today. The aging water and wastewater infrastructure, and the increasing capital and operational costs that drove these rates higher over the last two decades are unlikely to change in the years ahead. That means we can expect to see water rates climb into 2021 and beyond.

Much like water, the underlying issues driving rates up in the waste removal industry are likely to keep rates high moving forward. The biggest issue is that China is no longer interested in purchasing much of our scrap, turning a former profit center into an increasingly expensive endeavor. The waste industry is seeing an active labor shortage, which means waste haulers need to provide higher pay and better benefits to bring in drivers and other staff. As these expenses rise at the same time that recyclable profits plummet, expect waste rates to rise with more fees and higher prices for recycling in particular.

With rates heading up, there’s no time to delay. Make 2021 the year you resolve to stop paying for your residents’ utility use, promote the power of conservation and increase tenant accountability by signing up for a ratio utility billing service.

Super Saver Tip of the Month

Preparing for winter storms means more than just clearing gutters and removing debris from flat roofs. Take a hard look at trees and other large plantings around your properties. Dead limbs can fall and severely damage buildings or block roadways.

Because it can be harder to tell if a limb is dead or alive in the leafless winter months, try this simple branch test. Break a few smaller branches on the questionable limb; if they snap and break quickly without arching, they are dead.