We are helping with leasing and renewals for an asset at which they bill back the cost of hot and cold water, HVAC, and electricity, without an individual meter on each unit. A professional utility billing partner takes the utility bills and divides it according to accepted business practice, such as how many people live in the apartment home, etc. But the pass-through costs can be high, the A/C isn't necessarily as cold as people would like, and the hot water takes a while to get to some of the "end" apartments.
Can you MultifamilyInsider Experts give some leasing and renewal tips?
Would LOVE your insights!
I would think a simple Allocation Plan based upon the number of occupants and square footage of the unit. The industry standard is 80% of the utility costs are allocated to residents. The advantage of apartment renting is the fact that utility costs are generally lower. And when compared to LEED Cert build versus existing Class B or SFR' the savings is dramatic. This green and energy savings appears to be the new "hot button" of potential tenants.
Gary Banner CCIM
Sr Market Analyst
TRU Development Co.
Las Vegas Nevada