As the demand for water, gas and electricity continues to rise at rates higher than those at which resources are available, everyone is facing much higher utility expenses.
For Boston and the surrounding area this is especially true as the area has some of the highest water and sewer costs in the nation.
This is due to a number of factors, including in a large part, to the surcharge added to this utility to help fund the Boston Harbor water quality cleanup program.
The bright side is that there exists an opportunity for owners of rental property to aid their residents in the conservation of these resources.
What's more, this can be done in a way that saves residents money while improving the owner's bottom line.
Conservation-minded efforts are emerging as both practical and effective.
Establishing systems that make residents financially responsible for their own utility usage has been well documented to encourage conservation.
As Eileen Lee, PHD.
, Vice President of Environment for the National Multi Housing Council (NHMC) and National Apartment Association (NAA) Joint Legislative Program notes, "People tend to value things they pay for".
Studies co-sponsored by the two organizations have shown, for example, that water usage was reduced by 19-39% using sub-metering..
This does not include an estimated 16 to 30% reduction in heating costs associated with reduced domestic hot water as a result of sub-metering.
Ratio Utility Billing systems (RUBs), a commonly used allocation method, is another way to bill back utilities to the tenants.
While there are no up front equipment costs, this method has been shown to provide little if any, conservation results.
Technologies have evolved over the years that now make sub-metering cost effective for both new construction and existing buildings regardless of the plumbing infrastructure.
The concept of sub-metering utilities in the United States has been around for over 50 years with the sub-metering of electricity in multi-family units the first to evolve.
Gas (heat) and water are now becoming common utilities to sub-meter as their costs have outpaced inflation over the years.
As Lee states "The unbundling of utility charges from the typical rent payment can provide consumers with an important signal about the price of a resource.
Not only do residents use less when they are paying directly for it, but it also makes them more aware of the importance of immediately reporting problems such as plumbing leaks.
" The charging of water and sewer costs back to the tenants using an allocation method such as RUBs is not allowed in Massachusetts leaving the only method to bill back this utility being sub-metering.
The sub-metering of water for new and existing construction multi-family buildings has increased in popularity over the years in Massachusetts as water and sewer costs have continued to climb.
Legislation went into effect in March of 2005 making the sub-metering of water legal in apartment buildings in Massachusetts.
As part of the legislation, other specific provisions were included as part of the sub-metering process.
For example, equipment installations much be performed by licensed plumbers, and low flow devices in place for all faucet aerators (less than 1.
5 gallons per minute (gpm)), shower heads (2.
2 gpm or less) and toilets (1.
6 gallons per flush).
Paper work confirming the above must be filed with the local board of health.
Also, tenants who currently reside under a lease agreement that does not include the provision for the paying of water and sewer are grandfathered to not have to pay for water and sewer as long as they remain in the same apartment unit.
Property managers are encouraged to begin changing their lease language now for new tenants to include this provision in their lease agreement to prepare for a future sub-meter program.
Owners and property managers are encouraged to consult their own legal representatives and to also use a qualified installation and billing company that fully understands the required steps.
Very few residents are likely to initially embrace being billed for water, but empowering them with the opportunity to control such an expense can be a big help to control an ever increasing budget line item.
With sub-metering, everyone participates in conserving this resource, not just the property management.
Results confirm the old adage that "there is power in numbers".
Water Conservation in Massachusetts 5/5/2009
For Boston and the surrounding area this is especially true as the area has some of the highest water and sewer costs in the nation.
This is due to a number of factors, including in a large part, to the surcharge added to this utility to help fund the Boston Harbor water quality cleanup program.
The bright side is that there exists an opportunity for owners of rental property to aid their residents in the conservation of these resources.
What's more, this can be done in a way that saves residents money while improving the owner's bottom line.
Conservation-minded efforts are emerging as both practical and effective.
Establishing systems that make residents financially responsible for their own utility usage has been well documented to encourage conservation.
As Eileen Lee, PHD.
, Vice President of Environment for the National Multi Housing Council (NHMC) and National Apartment Association (NAA) Joint Legislative Program notes, "People tend to value things they pay for".
Studies co-sponsored by the two organizations have shown, for example, that water usage was reduced by 19-39% using sub-metering..
This does not include an estimated 16 to 30% reduction in heating costs associated with reduced domestic hot water as a result of sub-metering.
Ratio Utility Billing systems (RUBs), a commonly used allocation method, is another way to bill back utilities to the tenants.
While there are no up front equipment costs, this method has been shown to provide little if any, conservation results.
Technologies have evolved over the years that now make sub-metering cost effective for both new construction and existing buildings regardless of the plumbing infrastructure.
The concept of sub-metering utilities in the United States has been around for over 50 years with the sub-metering of electricity in multi-family units the first to evolve.
Gas (heat) and water are now becoming common utilities to sub-meter as their costs have outpaced inflation over the years.
As Lee states "The unbundling of utility charges from the typical rent payment can provide consumers with an important signal about the price of a resource.
Not only do residents use less when they are paying directly for it, but it also makes them more aware of the importance of immediately reporting problems such as plumbing leaks.
" The charging of water and sewer costs back to the tenants using an allocation method such as RUBs is not allowed in Massachusetts leaving the only method to bill back this utility being sub-metering.
The sub-metering of water for new and existing construction multi-family buildings has increased in popularity over the years in Massachusetts as water and sewer costs have continued to climb.
Legislation went into effect in March of 2005 making the sub-metering of water legal in apartment buildings in Massachusetts.
As part of the legislation, other specific provisions were included as part of the sub-metering process.
For example, equipment installations much be performed by licensed plumbers, and low flow devices in place for all faucet aerators (less than 1.
5 gallons per minute (gpm)), shower heads (2.
2 gpm or less) and toilets (1.
6 gallons per flush).
Paper work confirming the above must be filed with the local board of health.
Also, tenants who currently reside under a lease agreement that does not include the provision for the paying of water and sewer are grandfathered to not have to pay for water and sewer as long as they remain in the same apartment unit.
Property managers are encouraged to begin changing their lease language now for new tenants to include this provision in their lease agreement to prepare for a future sub-meter program.
Owners and property managers are encouraged to consult their own legal representatives and to also use a qualified installation and billing company that fully understands the required steps.
Very few residents are likely to initially embrace being billed for water, but empowering them with the opportunity to control such an expense can be a big help to control an ever increasing budget line item.
With sub-metering, everyone participates in conserving this resource, not just the property management.
Results confirm the old adage that "there is power in numbers".
Water Conservation in Massachusetts 5/5/2009
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