Utility expenses can take up a significant portion of a multi-family building's operating budget. This is why managing utility costs is a top priority for property managers responsible for these buildings. Doing this well can save money, use resources more efficiently, and lower the environmental impact.
In this post, we'll share some tips on utility cost management for your building's main utilities.
4 Ways to Lower Your Electricity Costs
Managing electricity in multi-family buildings doesn’t have to be complicated, and it can save you a lot of money. With a few simple changes, property managers can cut down on electricity use while keeping tenants comfortable.
Tip No. 1: Install Energy-Efficient Lighting
You can replace incandescent and fluorescent bulbs with LED lighting in all common areas and outdoor spaces. LEDs use up to 75% less energy and have a longer lifespan.
You can also opt for motion-activated lights in areas with low foot traffic, such as stairwells, storage rooms, or parking garages, to reduce unnecessary energy consumption.
Tip No. 2: Optimize Heating and Cooling Systems
Regular HVAC maintenance is a simple way to keep systems running smoothly and avoid wasting energy. Cleaning and servicing units on schedule can make a big difference. Another great option is installing smart thermostats.
These programmable devices adjust temperatures automatically based on occupancy, helping you save energy without sacrificing comfort.
Tip No. 3: Address Phantom Loads
Educating tenants about unplugging devices is an easy way to save energy, as many electronics still use power when off. You can also offer smart plugs that automatically turn off devices during non-peak hours, making it even easier to reduce electricity waste.
Tip No. 4: Leverage Renewable Energy
Using renewable energy is another smart way to cut electricity costs. Installing solar panels can reduce reliance on grid power, and incentives or rebates might help cover some of the installation expenses.
4 Tips to Manage Your Water Costs
Managing water costs is important in multi-family properties since even small inefficiencies can increase water costs quickly. Here are some steps to help reduce water waste:
Tip No. 1: Fix Leaks Quickly
Check faucets, toilets, and pipes regularly for leaks. Even a small drip can waste a lot of water every day. You can also use leak detection systems. These smart sensors tell you about water leaks early so that you can fix them before they become a bigger problem.
Tip No. 2: Install Water-Efficient Fixtures
Switching to low-flow fixtures like faucets, showerheads, and toilets is an easy way to cut down on water use. You can also install motion-sensor faucets in common areas like gyms and lobbies to stop water from being wasted when no one is using them.
Tip No. 3: Educate Tenants About Water Conservation
Share easy water-saving tips with tenants, like turning off the tap while brushing their teeth or using shorter washing machine cycles. You can also promote efficient laundry habits by encouraging them only to run full loads, which makes the most of the water used per cycle.
Tip No. 4: Optimize Outdoor Water Usage
Install smart irrigation systems that check soil moisture and water only when needed. For landscaping, choose native or drought-tolerant plants that don’t need much water to thrive.
How DrizzleX Can Help You Manage Utility Costs
DrizzleX is a powerful tool for managing water-related utility expenses in your building. By tracking water consumption and identifying hidden problems, DrizzleX has been helping large utility customers, such as property managers, reduce waste and keep costs under control.
Buildings that use DrizzleX typically see a 25-45% reduction in water bills, making it an effective solution for cutting utility costs. Thanks to these savings, most buildings recover the cost of the system within about 9 months.
Curious how DrizzleX can help your building? Get a quote today and see your potential water savings!
Detailed Usage Reports
DrizzleX offers a “Water Consumption Insights Report” that shows how much water is used. This helps you spot wasted water and fix problems. Sharing this report with tenants can also encourage them to save water and lower costs.
Leak Detection
Hidden leaks can increase your water bills without you noticing. DrizzleX tracks water flow across your property to find and fix leaks before they get worse.
Real-Time Alerts
DrizzleX sends email alerts for leaks or overuse. The alerts show where the issue is, how much water is wasted, and how to fix it. Acting fast can save money.
Easy Billing
DrizzleX tracks water use by tenants, so you can bill them fairly. When tenants see their own usage, they tend to save water, reducing overall costs.
FAQs About Utility Cost Management
What is utility expense management?
Utility expense management is the process of tracking, analyzing, and controlling utility costs like electricity, water, and gas. It helps businesses and individuals manage their utility bills efficiently by reviewing utility invoices, monitoring utility data, and identifying ways to reduce utility expenses. For large utility customers, this process often involves specialized services or tools to handle complex utility accounts.
How do you calculate utility costs?
To calculate utility costs, review the total charges on your utility bill. These charges include the cost of energy or water used, taxes like utility user taxes, and any additional fees municipal utilities impose. Electric utility companies interpret usage based on meters, so checking the rates per unit of energy or water used is important. Large utility customers may use advanced systems or services to analyze and control their utility expenses more effectively.
What is utilities management?
Utilities management involves overseeing all aspects of utility services, such as electricity, water, and gas, for homes, businesses, or large organizations. It includes utility bill management, ensuring timely payments, and working with utility providers to resolve billing issues. Many municipal utilities provide specific guidelines for their services, and effective management can help utility customers save money while reducing utility expenses.
What is the formula for utility cost?
The basic formula for utility cost is:
Utility Cost = Usage x Rate Per Unit + Taxes + Additional Fees.
For example, electric utility companies interpret your energy usage and multiply it by the rate per kilowatt-hour (kWh). Then, they add utility user taxes and fees that municipal utilities impose. For businesses and large utility customers, a utility cost management LLC or companies that offer similar services can simplify this process, making it easier to monitor and save money on utility expenses.
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