How ESG Property Management Helps With Water Scarcity and Affects Your Bottom Line

Water scarcity is no longer just a distant concern—it’s a growing challenge that affects property management, tenants, and the real estate industry as a whole. Across the country, water costs are steadily rising, adding financial pressure to both property managers and tenants.

Aside from rising costs, water availability is also shrinking due to environmental and infrastructure challenges.

Let’s explore why water scarcity is a pressing issue and how ESG property management can help address it.

What Is ESG Property Management?

ESG property management is about making properties more sustainable, socially responsible, and transparent.

It’s a way for property managers to reduce waste, use energy and water wisely, and treat tenants and stakeholders fairly.

In simpler terms, ESG stands for:

Environmental focus by using resources like water and energy carefully and reducing pollution.
Social responsibility by supporting tenants, creating positive communities, and listening to tenant needs.
Governance means being clear about decisions, staying organized, and following rules.

Why Action on Water Scarcity Is Needed Now

Water scarcity is becoming more noticeable in daily life. From droughts to infrastructure issues, the need to act is growing. There are two reasons why:

Rising water costs
Growing awareness about the issue of water scarcity

Let's talk about these reasons in detail in the next section.

How Water Costs Are Changing and the Factors Behind Them

Property managers feel the impact of water scarcity, as rising costs strain budgets. In fact, water rates have risen by over 40% in some regions over the past decade. This trend is expected to continue as supply struggles to meet demand.

Several factors are pushing water prices higher, and they affect properties nationwide. Here’s a closer look:

Climate change: Water and climate change are closely connected. Extreme weather is making water scarcer, less predictable, and more polluted. Droughts and unpredictable rainfall patterns are shrinking the available water supply in many regions. Hotter temperatures also mean higher evaporation rates, further straining reservoirs and water systems.
Aging infrastructure: Much of the country’s water infrastructure is outdated, with some systems over 50 years old. Repairs and upgrades of these infrastructures are expensive, and utility providers often pass these costs on to customers.
Increased demand: Population growth and urban development increase water consumption, especially in cities. Higher demand also leads to competition for resources, which drives up prices.
Regulatory costs: Stricter environmental standards for water treatment and delivery require costly upgrades. These regulations are necessary for safety but add to the overall expense of water systems.

Public Awareness About Water Scarcity

Public awareness about water scarcity is growing rapidly. People now understand that access to clean, reliable water isn’t guaranteed, and they are becoming more conscious of how their actions contribute to the problem.

Rising water costs, frequent droughts, and media coverage have made water scarcity a topic that cannot be ignored.

Tenants are also becoming more vocal about sustainable practices. Here are some interesting green renting statistics:

Nearly 72% of renters care about environmentally friendly property management.
About 74% of renters want landlords to use energy-efficient technologies.

Actionable Steps to Conserve Water and Reduce Your Ecological Footprints

Addressing water scarcity requires more than awareness—it demands action. Both property managers and tenants can take ESG initiatives to reduce water usage and promote sustainability.

Educate Tenants About Water Conservation

Raising awareness among tenants is one of the simplest and most effective ways to promote water conservation.

Ways to engage tenants:

Share water usage data: Providing tenants with regular updates on their water consumption can motivate them to avoid wasting water.
Create educational materials: Distribute newsletters, flyers, or social media posts with practical tips, such as shorter showers or fixing leaks promptly.
Offer incentives: Reward tenants who meet conservation goals with discounts or community recognition.

When tenants understand how their actions affect water use, they are more likely to adopt sustainable habits.

Install Water-Saving Technologies

Technological upgrades can significantly reduce water waste while improving efficiency. Property managers can make smart investments in systems that monitor and optimize water use.

These tools not only save water but also lower utility bills over time.

Smart water meters: Track water usage in real-time, helping to identify irregular patterns or leaks quickly.
Low-flow fixtures: Swap standard faucets, showerheads, and toilets for low-flow options to save water without losing performance.
Leak detection systems: Detect leaks early and avoid unnecessary water loss.

Expand Conservation Across Entire Portfolios

Scaling water conservation efforts across multiple properties amplifies the impact. A portfolio-wide approach allows property managers to lead by example while demonstrating a strong commitment to ESG initiatives.

You can do the following portfolio-wide actions:

Standardize water-saving policies: Apply consistent guidelines for water usage, such as installing low-flow fixtures in all properties or conducting regular leak inspections.
Leverage ESG performance metrics: Use data to track progress and report achievements to stakeholders, showing measurable success.
Collaborate with local organizations: Partner with environmental groups or government programs to access resources, funding, or incentives for conservation projects.

Financial Advantages of ESG Property Management

Managing properties with ESG principles isn’t just good for the environment—it also makes financial sense. Let's discuss its financial benefits below:

Higher Rents and Fewer Vacancies

Energy-efficient buildings with certifications like LEED, BREEAM, or WELL aren’t just good for the planet—they’re good for your wallet too. Tenants are willing to pay more for spaces that help them save on utilities and create a healthier environment.

Plus, these buildings often lead to fewer vacancy periods, so you’re not constantly dealing with empty units or hunting for new tenants.

Boosted Property Value

A building with lower running costs and a solid ESG track record is a big win for buyers and investors. They see it as a safer bet, which can drive up its value. In many places, sustainable buildings even sell for more because people want properties that meet modern green standards.

Lower Costs Over Time

Spending on energy-efficient upgrades or smart building tech now can save a lot in the long run. Simple things like better lighting, smart thermostats, or automated maintenance can cut down energy waste and repair bills. Happy tenants are a bonus—they stay longer and complain less.

Ready for Whatever Comes Next

Climate change, new health regulations, rising energy costs—things keep changing, but ESG-focused buildings are built to handle it. Properties with flood protection, air filtration, and touchless tech don’t just offer peace of mind—they also help keep rental income steady while other buildings struggle to keep up.

Save Money by Conserving Water: A DrizzleX Case Study

DrizzleX's case study provided a helpful comparison of potential savings a multi-family property can achieve by conserving the same amount of water in different locations. All is done with the help of reliable submetering solutions and commitment to water conservation.

How DrizzleX Can Help You With ESG Property Management

DrizzleX detects hidden leaks like running toilets and alerts you to tenant overuse, helping cut water bills by 25-45%. Most buildings recover our system’s cost within 9 months.

Usage reports: DrizzleX offers a “Water Consumption Insights Report” report to highlight excessive water use. These reports help reduce waste and let you share accurate data with tenants about their habits.
Leak detection: Some leaks are hard to spot, showing up only on utility bills. DrizzleX monitors water flow, alerts you to leaks, and shows where and how much water is being lost.
Email alerts: When a leak is found, DrizzleX sends an email with details about the apartment, fixture, gallons wasted, potential costs, and how to fix it.
Billing: DrizzleX lets you bill tenants based on actual water use, encouraging conservation with fair and accurate charges.

Schedule a free water consumption consultation and uncover your savings!

FAQs About ESG Property Management

What is the ESG strategy in real estate?

ESG strategy in the real estate industry involves property managers and property owners implementing ESG initiatives to reduce energy consumption, improve waste management, and create energy-efficient properties. By focusing on ESG principles, the strategy supports sustainability and minimizes environmental impact while improving ESG performance.

What are the ESG criteria in real estate?

ESG criteria in real estate guide property operations by focusing on energy efficiency, waste management, and governance. Real estate companies and property managers aim to reduce energy usage, adopt green leases, and implement ESG strategies to improve ESG performance and reduce the environmental impact of properties.