Multifamily Owners & Managers: Including Utilities May Be Killing Your Properties – Learn How to Protect Your NOI, Revenue, and lower expenses.
If your multifamily property includes utilities with the rent, your property may not be reaching the full extent of its Net Operating Income (NOI). Utility costs are ever increasing and they are continuing to eat at the property’s profits. There is something that is more concerning; you are now responsible for a very large expense that you cannot control. The “All-Bills Paid” model puts you at the mercy of the tenants, their usage trends, and the utility companies that provide the service to your property. This utilities-included model means you have to be a very accurate budget planner and guarantee that the rental income will pay for the property’s utility expense on a yearly basis. Underestimate on the budget and the property will pay.
The exciting news is that you can quickly and easily change this situation by separating utilities from the rent fee and billing tenants directly–at no cost to you. Our billing company passes the charges onto the residents. By doing this, you’ll make an encouraging and instant impact on your NOI and the value of your property. From a price perspective, your complex will be more appealing to prospective tenants because of lower rents and lower utilities. As well, you have successfully removed yourself from the utility equation altogether. Billing residents directly means more tenant awareness and conservation, which in the end, will lead to higher profits for you.
Contact us in order to discuss how we can help.