Owner-Pay Policy Costs Landlords
The study found that multifamily buildings where owners pay utility bills use approximately 30 percent more energy (BTUs) per square foot than buildings where tenants pay utility bills. Additionally, the study found that annual utility costs for buildings with owner-paid bills are 20 percent higher than tenant-paid bills.
WegoWise determined these results by applying advanced regression modeling on monthly utility data from over 3,000 multifamily and affordable housing building across Massachusetts. The study also shows that on average tenant-paid buildings turn on heaters at temperatures six degrees lower than owner-paid buildings. In Massachusetts, owners are required to keep interior temperatures at 68 degrees or higher during the day and 64 degrees or higher at night to account for tenant comfort. The study suggests owners obey this law, heating buildings on average to 66 degrees.
“This study reveals that behavior changes driven by financial incentives result in far more impressive energy reductions than traditional behavioral efficiency approaches. In some cases, these savings might even be on par with building upgrades and retrofits,” said Barun Singh, founder and chief technology officer at WegoWise. “We look forward to fostering a broader market discussion about designing scalable ‘shared incentives’ that encourage meaningful behavior change alongside building upgrades. This combined approach could dramatically transform resource use across building portfolios.”
WegoWise’s platform regularly identifies impressive opportunities for cost savings, as inefficient buildings typically pay four times the utility costs of efficient buildings. Learn more at blog.wegowise.com.
American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.
Accessibility