“Energy is the only controllable cost in real estate right now.” I’ve heard this from a few real...
Real estate crisis: turning to energy efficiency for cost savings
The financial outlook for real estate is borderline apocalyptic.
Revenue is capped or down.
Taxes and labor are at an all-time high.
Mortgages are being refinanced at 2-5x their old monthlies (if they are even being offered).
And every day there seems to be a new law or regulation going into effect that adds new complexity and costs.
It’s a bleak picture for many buildings.
But there is one bright spot. Literally.
Energy? Isn’t it that cost at an all-time high as well?
Yes. But - it's also more controllable than ever. In fact, most buildings can drop their energy costs by 30% with a little time, money, and effort.
1. Take control of temperature controls
Right now, operators have no way of knowing what the temperature of each apartment is.
The average centrally heated building in this country is heated to 77 degrees - even though that’s wildly expensive for ownership and uncomfortable for tenants.
By installing smart controls that precisely heat the building using indoor temperatures, we can reduce energy waste in buildings by 20+% while making tenants more comfortable.
2. Install smart sensors that detect issues in real-time.
Don’t wait until it’s too late to find out you have a massive boiler leak, hot water that can scald people, or ten running toilets costing $100K a year in water.
Installing smart sensors in your properties will diagnose problems as they occur, letting you respond immediately before the problem compounds.
Addressing an issue in hours instead of days can save thousands of dollars and dozens of headaches.
Many of these sensors are either included with or a low-cost add-on to smart controls (like Runwise).
There are only two ways to fix a business’s financial situation - increase revenues or cut costs.
With rent increases capped or going down and most other expenses fixed at all-time highs, forward-thinking landlords have only one option.
Save energy, detect problems earlier, and reduce costs.