Utility submetering is recognized as an excellent way for multifamily and commercial properties to cut costs and conserve energy. Unfortunately, some property owners are still hesitant to take the plunge. Learn more about the key factors that make 2012 an excellent year to submeter.
Submetering is no longer a foreign term in the multifamily and commercial property industries. In fact, water submetering has become a required practice in certain cities and states. Georgia’s Water Stewardship Act requires all multi-family and commercial units to be submetered by July of 2012. Areas of California and Texas have also passed similar laws that will take full effect in the next few years.
The rise of submetering popularity has also led to a wide range of tax rebates and tax deductions aimed at this energy efficient practice. For example, the Energy Policy Act (EPACT) provides a $1.80 per square foot tax deduction for the design and construction of energy efficient buildings through December 31, 2013. A variety of energy efficiency rebates that can also apply to submeter installation are also found on the Database of State Incentives for Renewables and Efficiency website.
In addition to the tax benefits available, the vacancy rate for multifamily properties is predicted to decline from the current 5.8% in 2011 to 4.9% in early 2012, and will continue to decline further as the year progresses. Commerce Department statistics expect rents to spike approximately 7% in the next two years, compared to the normal 1% increase seen in recent years. These statistics, combined with the predication that an influx of millions of gen-x and gen-y renters will soon enter the rental market, makes 2012 the perfect time to upgrade your property’s energy efficiency and lower operating costs.
Is 2012 the year to submeter your multifamily or commercial property? Contact us at 1-800-256-9826 for more information on submeter installation, meter reading services, as well as billing and collection services.