Multifamily operators can’t afford a set-it-and-forget approach to multifamily utility management. Water, gas, sewer, trash, and electricity have become complicated to administer for property management portfolios. Finding yield through managing utilities now takes a strategic approach. Regulations that vary from state to state cloud the water for property managers who go it alone in apartment utility management. And choosing a path of least resistance to resident billing and maintaining the status quo can get portfolios into trouble. Without constant attention, property risks not recovering enough expenses from residents, leaving money on the table. But within state and local compliance are opportunities for property managers to not only recover apartment utility costs but also increase NOI. Utility management advisors can help lead the way. ‘Every dollar counts’ in multifamily utilities Amye Baker, who is Vice President of Product Success for RealPage Utility Management, notes finding or saving money on utilities can be done simply by understanding compliance. For instance, in Texas, property managers can choose to allocate utilities using a RUBS billing method based on the number of bedrooms the property has to offer when sub-meters are not installed in each unit. Rates billed per bedroom are based on the assumption that all units are occupied. It’s a simple billing method that requires little month-to-month administration and is effective as long as occupancy levels stay constant. But when occupancy dips, the property can find itself on the wrong end of utility billing. As more units become vacant, the property’s resident recovery income drops. Ultimately, the property won’t be able to recover as much of the expenses they are being billed by the utility company as they could with a different approach. A utility management advisor might recommend a billing method that excludes the use of vacant units to drive a higher ov...

Multifamily operators can’t afford a set-it-and-forget approach to multifamily utility management. Water, gas, sewer, trash, and electricity have become complicated to administer for property management portfolios. Finding yield through managing utilities now takes a strategic approach. Regulations that vary from state to state cloud the water for property managers who go it alone in apartment utility management. And choosing a path of least resistance to resident billing and maintaining the status quo can get portfolios into trouble. Without constant attention, property risks not recovering enough expenses from residents, leaving money on the table. But within state and local compliance are opportunities for property managers to not only recover apartment utility costs but also increase NOI. Utility management advisors can help lead the way. ‘Every dollar counts’ in multifamily utilities Amye Baker, who is Vice President of Product Success for RealPage Utility Management, notes finding or saving money on utilities can be done simply by understanding compliance. For instance, in Texas, property managers can choose to allocate utilities using a RUBS billing method based on the number of bedrooms the property has to offer when sub-meters are not installed in each unit. Rates billed per bedroom are based on the assumption that all units are occupied. It’s a simple billing method that requires little month-to-month administration and is effective as long as occupancy levels stay constant. But when occupancy dips, the property can find itself on the wrong end of utility billing. As more units become vacant, the property’s resident recovery income drops. Ultimately, the property won’t be able to recover as much of the expenses they are being billed by the utility company as they could with a different approach. A utility management advisor might recommend a billing method that excludes the use of vacant units to drive a higher ov...