When communities come onto the Conservice utility billing program, we provide a detailed audit of their community and make recommendations that maximize recovery. Here are a few areas where property owners can generally improve recovery.
Find the right common area deduction (CAD)
A common area deduction, or CAD, is a portion of your utility expense that is not being billed out to residents to account for common areas (such as sprinklers) and is applicable for RUBS billing. You could be losing out on significant utility recover if your CAD is too high. Depending on the location of the community, there may be regulations that stipulate what you can and cannot bill to residents. In many cases, though, common area deductions can be reduced to increase recovery.
Ensure community is on an optimal rate schedule
Sometimes communities are placed on the incorrect rate schedule with the utility provider. If a community is being billed at commercial vs. multi-family rates, for example, they could be overpaying by thousands each year.
Install water sub-meters
If you haven't already, consider installing sub-meters to bill residents for their exact utility consumption. WIth metering, there is no guess work and residents are generally more satisfied with their billing program. Though there is an initial investment, the increase in property value and the more accurate billing can quickly make that investment worth your while.
Identify and bill vacant theft
By identifying occupied apartments that are consuming utilities under your community's name, and then billing those residents and including a significant penalty fee, you're not only recouping an otherwise lost cost, but you're motivating residents to put utilities into their name in the first place.
Ask a Conservice expert
Conservice provides all these tools, and more, to help property owners reach their maximum utility recovery potential. Contact Conservice to find out how you can reduce utility expenses and improve your bottom line.