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Utility Allocation: Owner Benefits
If you own or manage multi-tenant properties, you owe it to yourself to consider the benefits of utility
allocation and submetering, the implementation of utility meters in individual apartments, condominiums, or
commercial properties.
Commercial Water & Energy Co. is familiar with and can read all radio solutions, and can advise owners on the best
system for their application. You get an automated solution where bills are generated without the hassles of
traditional meter reading.
Reduces Operating Expenses
Experience indicates that residents in submetered dwellings who receive bills based on actual use decrease water
consumption by an estimated 18-39%. This modification in tenant habits results in a significant reduction in
operating costs for the property owner.
Favorable Market Rent Comparisons
The property that has moved the water utlity burden to the tenant no longer has to build rate increases into their
rental rate and will compare favorably to the competitor who still must do so. With sub-metering you allow your
tenant to decide how many dollars they want to invest in water and you are free to invest their rental dollars
in other ways.
Increases Property Value
By shifting utility costs from your operating expense statement, you benefit by increasing your value directly as
capitalization rates of your N.O.I. are directly affected. An annual water cost of $100,000 added to your N.O.I.
by submetering increases your value by $1,250,000 at an 8% cap rate.
Energy Pay Back
A common gauge of energy equipment value is pay back time. How long will it take for your savings to pay for the
capital cost of the system.
Commercial Water & Energy Co. will guarantee a maximum of 2 years for your payback.
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