One of the biggest things when it comes to property management is how to optimize utility consumption. Unfortunately, a lot of old buildings lack efficiency in terms of insulation, windows, mechanical systems, and plumbing systems because people weren’t really thinking about utilities and energy consumption 25 years ago, much less for 100-year-old buildings.
No matter how old your property is, the good news is you can hire the right partner that offers innovative energy solutions. Make utility efficiency a top priority, so make sure you don’t skimp out!
In today’s conversation, Jerry Armstrong of Thuesen Energy shares some ways to optimize your utilities, drive up the net operating income of your properties, and provide more value to your residents in terms of saving money on electricity and other utilities.
Jerry has been in the energy space for several years now. Aside from its robust metering technology, Thuesen Energy also has a system for billing. He helps owners, especially during the due diligence phase when they’re looking at buying apartment buildings.
Here are some power takeaways from today’s conversation:
Episode Highlights:
[02:30] Getting Started with Energy Efficiency
In terms of energy and utilities, the rates are just going through the roof and you have new laws to abide by. As an owner-developer, the first thing you want to do is find a good partner that can guide you in the right direction. You don't want to get into a situation where, after you acquire an asset, or after you're operating something, it's beyond the reactive. And so, you want to be on the proactive approach.
Next, look at the T12, which stands for the trailing 12 months, that looks at the property's performance over the past year. Check the spending on the utilities, and then develop a strategic plan where you’re making the utilities more of a profit center.
[09:52] How Thuesen Energy Can Help Building Owners
Thuesen Energy specializes in taking a holistic approach, looking at it in an entire system of solutions, and making sure each piece of the puzzle will work together in longevity.
With them as a partner in the background, they’re able to provide oversight onto the system, make sure it's performing the way it is, handle the individual charges going to the residence, and identify anomalies that may happen. It’s all about fully understanding that picture, but also having that partner to guide you along the way.
[20:05] Reducing Energy Costs and Consumption
For single-family, look at the building envelope. Find yourself an inspector that does a blower door test. Next, take a look at the electrical fixtures. Do you have LED lights or do you have the old filament-style light bulbs and light fixtures? Then, look at the plumbing features. Toilets nowadays use 1.28 gallons per flush. So make sure you’re not using toilets that are still 3.5 gallons per flush. 40% of your overall water consumed in a residential space is at the toilet, and over 75% of water waste happens through the toilet.
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