Reducing Utility Costs
The below topics are discussed in much more depth on our members' Reducing Utility Costs page.

Introduction

For many areas of the country, utility costs have increased at a much faster rate than rents and, for those landlords paying for water, electricity, and gas, the costs of utilities represent the largest non-mortgage expense.

Predictions are for higher even rates and for limits on consumption because of limited supplies and increased production costs.  These expectations should be of concern to income property owners, managers, and those considering the purchase of rental property..

What To Do?
There are basically two things that the owner, manager, and buyer can do to solve the problem.  They are:

• Implement conservation procedures (page available only to members)

• Transfer costs to tenants (page available only to members)

Conservation
      Conservation has long been an important concern and this will only increase as resources are strained due to population growth, more stringent water quality standards, a decrease in power source development.  Click here (member-only page) for a detailed discussion of conservation.

Cost Transfer
      Because of rising energy costs and the recent attention to existing and potential energy shortages around the country, transfer of costs to the tenants is an increasingly attractive practice at many types of residential, commercial and industrial buildings.  Click here (member-only page) for a detailed discussion of cost transfer.

Government Involvement
      Various levels of government are also doing things to encourage conservation.  This includes offering tax benefits to encourage sub-metering or a change in building codes to require sub-metering in new construction as a means of encouraging conservation.

Tax Deductible
       It should be remembered that the cost of retrofitting for sub-metering and the costs of other conservation efforts will be tax deductible.