Not Just for Tenant Billing: How Submetering Solves Common Operational Obstacles
Our playbook for solving major challenges in today's real estate marketChallenge: Recoup More in Operating Costs
Solution: Submetering clarifies who, how much, and when utilities are being consumed so you can bill back tenant utility expenses. We regularly hear, “We’re recovering all possible costs.” And then we find more to recover. The fact is that submetering is detailed work and takes a skilled and experienced team to do it right. There are dozens of places where small mistakes and inefficiencies lie in wait to suck the profits out of your operations. We regularly find inaccuracies in rates, meter readings, meter communications, and unit conversions, among other factors, that make a big difference on the final balance sheet and result in higher common area costs.
Related recommendation: If your CAM is 30%–35%, we strongly suspect your recovery could improve. Give us a call!
Challenge: Attract and Retain Good Tenants
Solution: This goal has become so much more difficult with the rise of remote and hybrid work. Our suggestion is to review what changes in lease options would bring in desirable tenants and make sense for your property. We gave some ideas for attractive lease terms in the life sciences in this article and for commercial office space in this other article.
(How does this relate to submetering? Knowing your actual cost baseline clarifies where you have room to negotiate.)
Challenge: Avoid Compliance Issues
Solution: Avoiding regulatory issues is a long game, and it's easy to put off until it’s too late or more expensive than it could've/should've been. If you’re up against Local Law 97, we have info and suggestions to move you onto a compliance pathway. Building performance standards are becoming more common, so implementing submetering is often not only required but also key to establishing the baseline you’ll need to comply with now and in the future.
Challenge: Encourage Tenants to Be More Efficient
Solution: We know – your time is finite and your to-do list is infinite. In our experience, properties can see good results by focusing their tenant communication efforts on the highest consumers. In general, 5% of the tenants consume 40% (or more) of the utilities. If your facing emissions fines, load issues, or just inefficient use of resources, these are the folks to start talking to. Accurate submetering will tell you exactly who they are and how they behave.
Challenge: Secure Outside Funding for New Assets
Solution: We’re on our soapbox for this one because remote submetering is incredibly helpful here. Qualifying for financial incentives and other external funding sources is much easier when you can document what you’re doing and how it’s going with irrefutable data.
Challenge: Operate More Efficiently
Solution: This challenge is another perfect fit for submetering. After all, how can you get where you want to go if you don't know where you are? Submetering identifies your starting point and acts as your compass for steering and validating decisions.
Facing any of these common challenges?
Unlike a call center, our Operations Center is staffed by experienced engineers and rate analysts who can answer your specific questions and help you determine solutions that fit your situation.
About utiliVisor
Your tenant submetering and energy plant optimization services are an essential part of your operation. You deserve personalized energy insights from a team that knows buildings from the inside out, applies IoT technology and is energized by providing you with accurate data and energy optimization insights. When you need experience, expertise, and service, you need utiliVisor on your side, delivering consistent energy and cost-saving strategies to you. What more can our 40 years of experience and historical data do for you? Call utiliVisor at 212-260-4800 or visit utilivisor.com