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There are two ways to make more money – increase your revenue, or decrease your expenses. Most Canadian provinces have very strict rent control laws, so as a high rise landlord there’s only so much you can do to increase revenue. At the same time, many building managers are battling with increasing bills across the board. This is true for condo corporations as well, with expenses forcing corporations to increase condo maintenance fees.
One of the biggest sources of bill increases is in water bills, where these costs are increasing by an average of 10% per annum. When it comes to how to lower your water bills, a Connected Sensors smart water leak detection system can help. But there’s more to it than just that.Read on below to find out some of the most effective commercial water conservation methods to help you reduce costs and increase profit in your high rise residential portfolio.
Perhaps unsurprisingly, this is a complex question without a single answer.There are a number of different factors at play that lead to an increase in water fees.First of all, the COVID-19 pandemic and other factors have led to higher vacancy rates in buildings. This leads to decreased water usage, but it also leads to decreased tenant revenue from vacant units. And if you’ve yet to use a pipe leak detector like the ODEUS or a smart water flow meter like the Water Monkey, whatever leaks you have in these vacant units will continue on regardless of their vacancy.That’s right, these vacant units represent not only lost revenue from the lack of tenancy, but water leakages will also end up costing you money each month.Another factor is aging infrastructure. This can lead to energy inefficiency, especially in old buildings.
But what’s to be done about it?In many cases, there’s resistance to implementing retrofits to buildings to improve their energy efficiency.Whether it’s a lack of capital, lack of comprehension of implementation, or various risk factors, each can be a barrier to improving the energy efficiency of older buildings.However, energy efficient retrofits have benefits that outweigh the costs of implementing them, both immediately and in the long term. Below are a few of the benefits of investing in energy efficiency in your commercial high rise building.
According to estimates from Real Estate Management Industry News, energy retrofits can reduce your energy bills by an estimated 15 to 40%. When it comes to water, there are a few ways to do this. You can upgrade your infrastructure – like replacing old toilets, showerheads, and other plumbing fixtures that may either leak or use water far less efficiently.With increased water costs annually, it is more important than ever to invest in improved water infrastructure. And with water being heated by gas or electricity, less water being used will also impact those utility bills.By lowering energy usage, gas, electricity, and water utility costs will lower.
By reducing energy bills across your high rise building, the money previously spent on wasteful energy can be reinvested into the building or returned to your tenants. Investments in infrastructure can improve your capitalization rate, the rate of return on your real estate investment property. They can also help your building become more competitive by continually investing in building improvements, and make the building more desirable for future tenants, many of which prefer greener buildings.
According to a conference paper delivered by University of Toronto researchers, multi unit residential buildings account for over half of the residential dwellings in the city of Toronto alone. What’s more, these multi unit residential buildings produce an estimated 17% of the city’s greenhouse gas emissions. By improving your building’s energy efficiency, not only can you save money, but you’ll benefit the environment as well. It’s estimated that building retrofits designed to improve energy efficiency can help reduce greenhouse gas emissions from multi unit residential buildings by 20% In addition, water conservation reduces the amount of water that requires treatment at the municipal level. Less water used also offloads some of the pressure on sewage systems.
If you’re a multi unit residential building owner in Canada and are investing in greener retrofits for your multi unit residential building, you may be eligible for the Canada Greener Homes Grant. Visit the Government of Canada website to find out more. There are a number of different criteria, but if your building meets them, you can use government funding to help improve your building’s energy efficiency.
If you’re looking to improve your water efficiency in your building, Connected Sensors is here to help. Contact us today to find out how you can save money, save your building, and save the planet, all at the same time.
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