Matt’s Multi-family Tips | June 2024 | Reduce Water Consumption
Each month, Matt shares a tip or piece of advice that you can implement at your property that month to maximize your multi-family property and investment. This month, Matt looks at how you can generate a 33% return on investment with a couple of ways to reduce your tenants’ water consumption.
Water consumption is a significant expense for owners of multi-family properties, especially since most owners cover their tenants’ water bills. Recent rate increases by the Board of Water Supply don’t offer any relief either. Here are the new rates that went into effect in February, with another near 10% increase going into effect in July:
By implementing a few strategic changes, you can combat these increases by significantly reducing water usage and improve your property’s return on investment (ROI). Here are some effective steps to achieve this:
- Install Low-Flow Toilets
Investment: The cost of a low-flow toilet ranges from $100 to $300, depending on the model and features.
Return: Traditional toilets use about 3.5 gallons per flush (gpf), whereas low-flow toilets use 1.6 gpf or less. For a building with 10 units, with 2 occupants flushing 5 times a day, the annual water savings could be:
- Traditional toilets: 3.5 gpf x 5 flushes/day x 2 occupants x 365 days = 12,775 gallons per unit per year.
- Low-flow toilets: 1.6 gpf x 5 flushes/day x 2 occupants x 365 days = 5,840 gallons per unit per year.
- Savings: 12,775 – 5,840 = 6,935 gallons per unit per year.
For 10 units, that’s a total savings of 69,350 gallons per year. Let’s assume that including the other water usage in your units from sinks and showers, you are in the 4,000 – 10,000 gallon monthly usage tier. That means in July, water costs you $0.00652 per gallon, so the annual savings from switching would be approximately $452.16. The cost of installing low-flow toilets can usually be recouped within a few years.
- Install Water-Efficient Showerheads and Faucets
Investment: Water-efficient showerheads and faucets typically cost between $20 and $50 each.
Return: Standard showerheads use about 2.5 gallons per minute (gpm), while water-efficient models use 1.5 gpm. If each occupant showers for 8 minutes a day, the savings are:
- Traditional showerheads: 2.5 gpm x 8 minutes/day x 2 occupants x 365 days = 14,600 gallons per unit per year.
- – Efficient showerheads: 1.5 gpm x 8 minutes/day x 2 occupants x 365 days = 8,760 gallons per unit per year.
- – Savings: 14,600 – 8,760 = 5,840 gallons per unit per year.
For 10 units, this translates to 58,400 gallons saved annually, potentially equating to $380.76 in water savings per year.
- Fix Leaks Promptly
Investment: The cost of fixing a leak or a running toilet varies, but it can be relatively low.
Return: A single leaky faucet dripping at one drop per second can waste over 8,331 gallons of water per year. That’s an extra cost of $54.32 PER faucet. Fixing leaks promptly can save hundreds of dollars annually.
Conclusion
Investing in water-saving measures can reduce your utility expenses and improve your property’s ROI. I just demonstrated how a ~$2,500 investment for a 10-unit building could save you around $832 annually, which is a 33% return on investment, not including any savings from fixing leaks. These investments not only save you money now but enhance the overall value of your property, and they also promote sustainability, which can be attractive to environmentally-conscious tenants (as well as just being a good thing to do).