The current state of the economy, an influx of younger renters, and stricter mortgage lending standards have all contributed to a significant increase in the rental population. In fact, The Wall Street Journal states that the 5.2% national vacancy rate, reported in the final quarter of 2011, is the lowest it has been in ten years. Find out why the recovering multifamily market makes now the prime time to upgrade the energy efficiency of your multifamily property.
While the recent influx in renters is certainly a positive thing for the multifamily property industry, new residents can quickly become costly if they are using utilities irresponsibly or avoid reporting maintenance issues. Utility submetering is one energy efficient practice that helps property owners to lower operating costs, and encourages residents to conserve as a way to save money on their utility bills. Since residents become financially responsible for their energy usage through utility submetering, they are more inclined to conserve energy and are often quicker to report any maintenance issues that arise. Tax incentives and rebates for submetering can also help to lessen installation costs for property owners.
When residents are responsible for paying their own utility costs, they will undoubtedly seek multifamily properties that offer energy efficient appliances. Finance-commerce.com explains that aside from utility submetering, property owners are also installing energy efficient HVAC and plumbing systems, doors, windows, insulation, and Energy Star rated appliances to appeal to residents. Many developers have even found success in converting and renting out unsold condo units that are equipped with energy efficient appliances. These rentals appeal to young families that looking are looking to live in a space that feels more like a home, without making the jump to actually purchase one.
Energy Star and LEED certifications are two additional ways for multifamily properties to stand apart from their competition and advertise their commitment to energy efficiency. Both of these certifications require energy benchmarking and auditing procedures along with specific categories that multifamily properties must adhere to in order to gain certification.
To learn more about how utility submetering can benefit your property and to schedule a free property audit, feel free to contact us toll-free at1-800-256-9826.