Utility billing services are services that are able to present a selection of utility billing options for their customers.
The strategy of these utility billing services is to supply the utmost quality billing services at competitive prices. It does not matter in most cases if your property is Metered or what is known as a RUB, these utility billing services are worth looking into. Professional staff and up to date software and hardware systems are assured to give prompt and courteous service to customers. Many times, utilizing a utility billing services can and will save you money in the long run. You will be able to customize bills and reports for your specific needs, as well as bill several utilities on the same bill such as gas, water, heating, electricity, and cooling all. If you own multiple properties, utilizing a Utility Billing Service can make submetering easier for your property manager and staff as well as keeping your residents happy with their customer care call centers.
Net Operating Income and Property Value Impact
The following example is based on a garden-style apartment complex that contains 215-Units. 93% of these units are occupied and the average water and sewer bill is 40.00 monthly per unit, which brings the annual water bill to approximately $96,000, and the rent per unit is $450.00 monthly.
Before the installation of a Sub metering System
(GRI) Annual Income $900,000
Expenses are at 50% of the GRI -$450,000
Net Operating Income $450,000
After the installation of a Sub metering System
(GRI) Annual Income $900,000
Water Income $96,000
Expenses are at 50% of the GRI -$450,000
Net Operating Income $546,000
Property Value Impact – Using a Capitalization rate of 10%
Property Value before Sub-metering $4,500,000
Property Value after Sub-metering $5,460,000
Property Value Increase $960,000
As you can see, the increase is directly connected to the amount that residents pay for their water usage. Although this is only an example, the information symbolizes the extent of the value of installing sub-metering brings to a great number of properties. Another aspect to think about is that leak detection and prevention on a sub-metering system will also reduce many other expenses. Water expense is considered to be the second largest expense in an operating budget: managing it the most accurately possible can positively impact your operating costs.
