The Importance of Multifamily Energy Benchmarking

Benchmarking utilities has become a way of life in multifamily. Not long ago, the EPA introduced its Portfolio Manager, a repository for a commercial property’s utility consumption data for benchmarking. By 2014, the arduous task of establishing an equitable energy efficiency scoring system for multifamily properties had arrived and the EPA invited portfolios to track consumption. Five years later, multifamily properties are not just being asked to benchmark – in some areas, it’s required. As we seek out new ways to protect our precious resources, local and state governments are mandating utility benchmarking for water, electric and natural gas usage. “Benchmarking is the word in everybody’s vocabulary,” says Dimitris Kapsis, RealPage Vice President, Energy Management. “And property managers need to know that they will be held accountable if they are not keeping up with the times.” But it doesn’t have to be as painful as it might sound. Energy management is a significant piece of apartment operations New York City and Seattle were pioneers in benchmarking energy and water consumption, and in recent years, several cities such as Atlanta, Philadelphia, Chicago, St. Louis, Denver and Los Angeles have jumped on board. Recently, the entire state of California joined the mandated group. The need to track energy and water consumption has intensified so much that many utilities companies are making it a part of their repertoire to share aggregate whole building usage data. In New York City, multifamily buildings have to go through an energy audit every ten years and properties have to do some type of conservation project to meet city and state approval. Multifamily professionals who aren’t voluntarily joining the crowd are in risk getting left behind and, in many cases, leaving money on the table. Energy management has become a significant part of today’s multifamily operational mode...