Boosting Property Value Through Water and Energy Efficiency

It’s hard not to avoid the deluge of climate change-induced news headlines about catastrophic activity such as hurricanes, floods and droughts. But perhaps more newsworthy, according to a panel of apartment industry professionals, is what operators can do in response. Reducing their carbon footprint – and more importantly, saving a ton of money – is achievable simply through easy-to-implement water and energy efficiencies that can add substantial dollars to cash flow and property values through modest investments. These low-cost preventive maintenance changes need to be repeated but are often overlooked with staffing changes or more urgent daily demands. Mary Nitschke, vice president, sustainability, RealPage; Scott Wilkerson, principal and COO, Ginkgo Residential; and Marc Treitler, president of sustainability solutions, general counsel, Conservice; offered these calls to action at National Apartment Association’s Apartmentalize conference recently in San Diego. Just 37c per Day Wilkerson said that by saving 37 cents per day, per unit, a 300-unit building can cut costs by about $40,000 annually. Given the median age for existing apartment stock is 40 years, these properties are ripe for improved conservation. Owners might gnash their teeth over investing in energy conservation, and residents might not fully embrace new behaviors, but “whether you are a renter or an owner, wasting money in any way is never a good idea,” Wilkerson said. “Some owners will say, ‘Why should I invest all this money to save on utility costs when it’s the residents who are paying for the costs?’ If you can help your residents to save on their energy bills, they will appreciate it, live more comfortably, and will tend to renew their leases – and that’s huge. After all, residents’ No. 1 complaint is about temperature—either air and/or water.” Wilkerson said that one of the first things Ginkgo R...