Why convert to resident-paid utilities?
- Utility Conservation
- Increased Profitability
- Increase in Property Value
- Reduces Fluctuating Utility Expenses
- Eliminate workload for property managers
Separating out the utilities from the rent helps owners by increasing net operating income (NOI) and property values. This helps insulate the owners from paying for excessive resident usage, or losing money when utility prices spike. By separating utility charges, the property is able to maintain their margin and still stay competitive in the rent market.
By converting to resident-paid utilities at your property, tenants become more aware of the effect that their energy usage has on the bill. When the utilities are billed separate from the rent, and vary from month to month, tenants are more likely to make efforts to conserve, whether it be by turning off lights, not letting the water run while doing dishes, or shortening shower times. Studies have proven that allocating utility charges reduces utility expenses by up to 30%.
The use of a third-party billing company to recover the utility costs at your property eliminates the workload for your property management team. The manager does not have to analyze the utility bills, enter the amounts into the resident ledgers, or worry about answering tenant billing questions. Managers can focus on meeting the needs of the property and its residents, while the third-party company handles the utility billing.