Increasing Revenue Through Water Utility Management
Updated: Nov 7
Increasing your multi-family unit revenue doesn’t have to mean raising your tenants’ rent. In today’s competitive rental market, there are other effective ways to boost your income without increasing rental rates.
One of the most effective strategies involves improving operational efficiency, particularly in water utility management.
Here is how leveraging advanced IoT water management technology can help you increase your bottom line without hiking up rent:
1. Understand Your Water Usage
As the old adage goes, a penny saved is a penny earned. This is especially true with multifamily properties.
Inflation skyrocketed in 2021, ramping from 1.4% to a whopping 7%. Although the trend has continued to cool into 2024, utility expenses have remained high. Over the past decade, there has been a 50% increase in water and sewer bills. In fact, utility expenses account for the majority of non-fixed expenses for landlords of multifamily properties.
So, what’s an owner or property manager to do?
Manage utility costs, specifically water, which can drain cash flow for landlords who pay renters’ water bills.
Surprises are good for birthdays, not water bills. So the first step to water expense management is water usage visibility.
DrizzleX is a high-tech water management system. It installs micrometers on all water fixtures in your property. This system offers a complete solution for water usage tracking.
These micrometers track real-time water consumption. This offers detailed insights into where and how water is consumed across all fixtures, from toilets to showers to kitchen faucets–in every unit.
By analyzing this data, property managers can identify high-demand suites, detect leaks, and recognize inefficient fixtures and even illegal shower head installations.
This granular approach pinpoints areas with water waste. This is essential for taking targeted action.
drizzlex micrometer connected to a washing machine
DrizzleX installs micrometers on each water fixture—such as toilets, faucets, showers, and baths—in every apartment unit. This detailed, real-time tracking of water usage allows for accurate monitoring of each fixture's performance. With this granular data, property managers can identify high-usage areas and inefficient fixtures, leading to targeted improvements.
The system’s precision enables an average reduction of 28.6% in water use per suite per day. In states like California, where average water/sewer rate is more than $16 per thousand gallons, this significant decrease directly translates into lower utility bills–approximately $333 per unit in California.
The savings can be tremendous. One community experienced 49% in yearly savings. Another saved 42%. With the high cost of water, this decrease is more a drop in the bucket.
Properties that align with their environmental values attract them.By using DrizzleX’s advanced water monitoring system, property managers can showcase their commitment to sustainability. This system saves 28.6% water per suite per day and shows a proactive approach to environmental responsibility.
Sustainability-conscious tenants often appreciate features like:
Eco-friendly upgrades
High-efficiency fixtures and appliances that minimize water waste
Transparent water consumption monitoring
Real-time insights into water consumption that help tenants understand their impact and make informed decisions
Water loss prevention
Swift identification and repair of leaks to prevent unnecessary water loss
By adding water utility management to your management plan, you can attract more tenants. This can also help improve your brand image. Additionally, it may lead to a decrease in turnover. This method helps the environment and appeals to renters who value sustainability in their lifestyle.
4. Encourage Efficient Behavior
Educational efforts are often limited when tenants are unaware of their water usage. DrizzleX provides detailed reports to help tenants understand their water usage and promote water-saving habits. For instance, landlords can inform tenants about the impact of taking shorter showers or fixing minor leaks.
Property managers can use DrizzleX data to create challenges or rewards for tenants to save water. This can help lower utility costs and improve property performance by encouraging tenants to use less water.
Similar programs in green apartment communities and eco-conscious housing initiatives have effectively used gamification and rewards to promote sustainability among tenants. For example, property managers can draw inspiration from reward programs used by corporations like Citibank and WeSpire to enhance tenant engagement in sustainability efforts.
Citibank has programs called Step Up and Drink Up challenges. These programs encourage employees to be more sustainable. They track and reward employees' efforts.
WeSpire's platform uses a points system to encourage users to do sustainable actions. Leaderboards display these actions and users share them on social media.
Property managers can set up a system for tenants to earn points by being eco-friendly. This can include actions like saving water or recycling. Tenants can redeem these points for rewards, enhancing engagement and fostering a community that promotes environmental responsibility.
This will consequently encourage a sense of responsibility and involvement, resulting in improved tenant relations and reduced turnover rates.
5. Invest in Efficient Fixtures
Upgrading to water-efficient fixtures can be costly. However, DrizzleX's data can help identify the areas where these upgrades will have the greatest impact. You can use this information to prioritize which fixtures to upgrade first. By focusing on these areas, you can maximize the benefits of water efficiency improvements.
Property managers can save water by focusing on fixtures that use too much. This helps them decide where to upgrade.
Moreover, replacing old, inefficient fixtures with modern, water-saving alternatives can further reduce water usage and operational costs. This approach not only enhances water efficiency but also improves the overall quality of the property.
6. Spot and Fix Leaks Quickly
Leaks are a common problem that can lead to significant water waste and increased utility costs. DrizzleX's micrometers give accurate information on water flow and usage. This helps property managers find and fix leaks early before they become bigger problems.
Finding and fixing leaks quickly helps save water, prevent property damage, and keep maintenance costs low. This also keeps tenants happy with their living conditions.
7. Optimize Water Management Strategies
Advanced water monitoring systems like DrizzleX offer valuable insights that help optimize water management strategies. The information gathered can help create specific plans to reduce water usage, enhance fixture efficiency, and educate tenants.
Also, the system uses AI to give advice and make improvements in the future. AI can identify fixtures that do not follow the rules and calculate the required amounts of hot and cold water. This will help you save money and work more efficiently.
8. Choose DrizzleX: Reduce Water Use by 28.6% and Attract Environmentally Minded Tenants
Increasing revenue without raising rent is achievable through effective water management. DrizzleX can help property managers in various ways. It can save water, cut costs, and make tenants happier. Additionally, it can assist in deciding on upgrades and repairs for fixtures.
This approach not only improves profitability but also contributes to a more sustainable and efficient property management practice. People use technology to improve water management and achieve financial gains on their property without raising rent.
Why is it important to enhance property revenue without raising rent?
Increasing rent can drive tenants away, whereas improving operational efficiency, especially in water management, can boost revenue without negatively impacting tenant retention.
How can I understand my water usage better?
Using advanced water monitoring systems like DrizzleX, you can install micrometers on each water fixture in your property. These devices track real-time water usage, helping you identify high-demand suites, detect leaks, and recognize inefficient fixtures.
How does DrizzleX help reduce operational costs?
DrizzleX can reduce water use by an average of 28.6%. For example, reducing water usage from 196 gallons to 140 gallons per suite per day can save about $333 per suite per year, significantly more than the annual $72 subscription fee per suite.
How can I encourage tenants to use water efficiently?
DrizzleX provides detailed reports on water consumption. Tenants can use these reports to educate themselves and encourage water-saving behaviors. Additionally, implementing water-saving challenges or incentives can motivate tenants to reduce their water usage.
What are the overall benefits of using DrizzleX?
DrizzleX saves water, money, and time by helping tenants, landlords, and property managers make smart decisions about plumbing upgrades. This improves profitability and contributes to a more sustainable and efficient property management practice.
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