Want to cut costs on energy? The National Apartment Association (NAA) Education Conference session entitled Return On Energy: Sustainable Case Studies for Catching Up offered several helpful tips for keeping costs low and residents happy. The session featured Martin Levkus, Regional Director, Yardi Energy; Tom Turnbull, Senior Engineer, JDM Associates; and moderator, Erin Hatcher, LEED Sustainability Manager & Development Associate with AMLI. Hatcher kicked off the session with a question to the audience: “in-house or out-of-house?” Some multifamily owners and operators, like AMLI, have the infrastructure in-house to do their own sustainability and energy efficiency projects. Others, need to outsource to experts if they don’t have the personnel or expertise to do it all themselves. Although both methods have pros and cons, there are some key tips that either method can use to help your properties operate optimally. Data + Analysis = Cost Savings You can’t improve what you can’t measure. Yardi has helped numerous businesses decrease utility expenses with the help of software and Levkus’ advice: “It all starts with a utility bill.” Before you can take down the low hanging fruit, you need to use data to identify it. Levkus referred to a case study including 14,600 units across 260 properties. The organization spent $50,000 – $100,00 in late fees each year. With better bill processing integrated into one software solution, they reduced late fees for roughly $75,000 in annual savings. Beyond paying the utility bills on time, you also want to make sure the bills have accurate charges. A separate Yardi study revealed that for a residential property management business spending $32 million per year on utilities across 63,000 invoices, there were significant billing errors by the utility company equallying $388,000 across two years – 0.55 percent of spend. Yardi’s goal...

Investing in earth-friendly energy solutions is an ongoing trend in real estate, across all market sectors.  Political and ethical reasons for implementing green building and utility systems notwithstanding, investors and owners of real property assets are often motivated to use new technology for monitoring and controlling energy use for an even simpler purpose: to cut costs. Government-supported initiatives, like Ontario’s saveONenergy for business, are just one of many motivators. Commercial owners and managers across North America are looking for creative ways to increase ROI and add investment value to existing properties. Energy retrofit projects are one pragmatic and earth-friendly way to achieve added value. In some cases, incentive funding can cover up to 25-30 percent of the project cost. But given the cost of implementing a new system or choosing a new contractor to handle your real estate energy needs, it isn’t easy to determine whether a significant investment is saving you money, and energy is one of the most expensive requirements of commercial property management. At the Green Real Estate Conference, held in late March in Toronto, a panel of experts from the energy sector addressed this topic and provided valuable insight on the best practices for energy management in commercial real estate. One analysis, provided by the forum organizers, estimates that energy costs comprise around 40 percent of building operating expenses. But the opportunity to reduce those costs is tremendous: a newly constructed green building typically cuts down conventional energy output by around 30 percent. And even if you are not building a new structure from the ground up, there are now alternative management methods to save resources and reduce expenses – often with minimal work required. Swift advancement in technology monitoring systems now makes it possible for large commercial buildings, with...