Utility expense is one of the largest variable expenses for multi-family property owners. By utilizing our FairShare Program™ owners will see a dramatic decrease in operating expenses. The FairShare Program™ releases owners from the volatile energy market to alleviate the burden of utility costs and create a more energy conscious resident.
Utility expenses are projected to escalate at a rate in excess of both the inflation rate and average rent increases. It is beneficial for owners to pass this variable expense to those who can control it, otherwise owners will have to accept less net income or implement unpopular rent rates.
Increased revenues combined with a more energy conscious resident and utility expense reimbursements from residents, increases the net operating income (NOI) and the overall value of the multi-housing property.
Great American services require absolutely no capital cost. A nominal billing fee is charged to the resident to cover administrative costs.
When residents are responsible for the utility charges they become more conscious of their utility usage, which benefits property owners and residents. In 1999, a study sponsored by the National Multi-Housing Council provided evidence that residents who are directly billed for utilities used less water than residents who had their water expenses included in their rent. Residents in a utility-allocation program conserve up to 27 percent.
