Apartment Utility Expense Management that Outperforms
Compared to the NAA’s Annual National Survey of Apartment Operating Income and Expense, Greystar’s utility expense management program saves money. Residents and owners of apartments managed by Greystar are benefitting from net utility costs that were 43% lower than the national average for 2012. Lower utility bills translate into significant monthly savings for residents and lower operating costs translate into increased property values for owners. The energy savings also has a wider impact on these communities, due to the smaller carbon footprint and benefits to the overall environment. These results stem from Greystar’s Redefining Green program, a comprehensive effort to increase sustainability at communities nationwide.
NWP Services Corporation (NWP), a provider of utility cost recovery and utility management solutions to the multifamily housing industry, and Greystar collaboratively analyzed actual property energy expense data using the NAA’s survey model and definitions as the framework. The survey reported a national average of apartment utility expense of $535 per unit, per year versus the Greystar achieved results which were $303.39 per unit, per year, bettering the market average by 43% on net utility expense.
According to the NAA study, utility costs on apartment communities average nearly 20 percent of total operating costs, up from 11 percent in 2004, and continue to be a top three expense item for property owners and operators. If asset managers wish to have a competitive advantage, finding ways to reduce utility costs will have a particularly strong impact not only on the property, but also on resident satisfaction. Residents are increasingly looking for ways to participate in sustainability efforts and reduce their expenses.
The full report, Reducing Utility Costs in the Apartment Sector, may be downloaded at nwpsc.com/whitepaper/greystar-outperform.
Greystar has developed the Greystar Green Awards, a proprietary web-based tool which records and quantifies changes made at all apartment communities to track how small actions become substantial impacts. Greystar apartments in Houston, Phoenix, Atlanta and more than 100 other cities and towns are eligible. To date, more than 120 apartment communities have won the award.