Water waste is a global problem that we face daily. It has worsened through the years due to the growing cases of properties with leaks, homeowners or tenants with inefficient water usage, or improper management practices.
In a multi-tenant setting (residential complexes, commercial buildings, and industrial buildings), the financial effects of water waste can be significant as it affects both property owners and tenants.
Every day, the United States sees more than 9.5 billion liters (approximately 2.5 billion gallons) of treated water disappear due to leaks in its water systems. This loss underlines the need for enhancements in infrastructure and the maintenance of current water systems.
In this article, we'll talk about the financial impact of water waste, its causes, and what technology can help this issue.
Causes of Water Waste in Multi-Tenant Properties
Water waste in multi-tenant properties can stem from several sources.
Leaks in the plumbing system, whether visible or hidden within walls or underground, account for a substantial amount of wasted water.
Inefficient water fixtures, such as toilets, faucets, and showerheads, contribute to excessive water use.
The absence of individual water usage monitoring means tenants and property owners may not be aware of their water consumption patterns, leading to unchecked waste.
Financial Implications of Water Waste
Impact on Utility Bills for Tenants and Property Owners
Even in cases where tenants are billed for their water usage, water waste can lead to higher utility bills. This is particularly true in properties without individual water metering, where the costs of wasted water are distributed among all tenants, leading to higher overall charges.
For property owners, even if the utility company directly bills the tenants, excessive water waste can reduce the attractiveness of the property due to higher living or operating costs, potentially affecting rental income.
Environmental Fines and Compliance Costs
Regulatory bodies in many regions impose fines and penalties on properties that exceed water usage thresholds or fail to comply with water conservation standards.
Such financial penalties can be significant, adding to the costs associated with water waste.
Environmental Benefits of Reducing Water Waste
Conservation of Water Resources
Reducing water waste is one step to saving our water supply in the long run. By practicing good water use and minimizing waste, properties worldwide can contribute to helping sustain the (local and global) water supply.
This helps support our ecosystem and surrounding communities that depend on these resources.
Reduction in Energy Consumption and Carbon Footprint
Water treatment and distribution require significant amounts of energy, which contributes to greenhouse gas emissions.
Multi-tenant properties that reduce water waste can indirectly lower energy consumption and the associated carbon footprint, supporting broader environmental sustainability goals.
More Clean Water
Saving water reduces water pollution, preserves more drinking water, enhances water quality, supports economic growth, and effectively mitigates environmental impact.
Submetering and Water Waste
Submetering is a system that involves installing individual water meters for different units or tenants within a multi-tenant property. This allows for the accurate measurement of water usage per unit, facilitating billing based on actual consumption rather than estimates or equal division among tenants.
It can also help increase property values as it protects properties from water damage in the long run.
How DrizzleX Can Help You
DrizzleX allows you to detect hidden leaks, such as running toilets and leaky faucets, to stop millions of gallons of waste each year. It also alerts you to excessive water overuse by tenants. Typically, buildings that use DrizzleX reduce their water bills by 25-45% or more.
And you can expect a pretty quick return on investment (ROI). Buildings with DrizzleX save enough water to cover the entire cost of DrizzleX within about 9 months on average.
Usage Reports
One of DrizzleX's solutions is the "Tenant's Overuse" report. Since many people aren't really aware of their excessive water usage, an accurate report can be very helpful in preventing unnecessary expenses.
Using the reports, you can communicate with your tenants about their water consumption habits and back them up with precise data.
Leak Detection
Leaks can be sneaky because they aren't always visible. With property inspection, you can see the obvious ones. But silent leaks will only show up on your utility bills. DrizzleX gives you water control because you can monitor the water flow in your building.
The system will notify you about where and how much water is being lost.
E-mail Notifications
Once DrizzleX spots the leak, it will notify you via email. The message you receive will include all the details about the exact apartment and fixture that is the culprit, how many gallons were used, how much it will cost you if the problem isn't fixed, and even possible causes for the water waste and how to fix it.
Billing
DrizzleX also allows you to bill your tenants. Tenants conserve water when they are the ones paying for it. You can easily create water bills based on accurate water consumption and bill them fairly.
FAQs About the Financial Impact of Water Waste
How does water waste affect economic growth?
Water waste contributes to stalling economic growth by increasing costs for water treatment infrastructure and reducing food production.
What role does deteriorating water quality play in the economy?
Deteriorating water quality, exacerbated by water waste, leads to worsening health conditions and is a key factor in hindering economic growth and may put people's health at risk.
Can water waste impact food production?
Yes, water waste is an issue that directly affects food production, leading to shortages and contributing to an invisible water crisis.
How does the World Bank view the financial implications of water waste?
The World Bank identifies water waste as a significant challenge, highlighting its role in increasing biological oxygen demand and threatening global economic stability.
