Think Outside the Box to Stabilize Your Rent

Significant increases in water and energy rates (due to inflation) could adversely affect the amount that affordable housing providers can charge for rent. If you own or manage LIHTC properties, this could cost you thousands of dollars in lost revenue.  

In the United States, electricity prices have increased by nearly 3% per year over the past 25 years. Natural gas rates continue to increase at a rate of 5% year over year. Water and sewer costs, which make up more than 60% of most residential utility bills, have continued to rise at a rate of 4% annually since 2012.

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Now, if you are relying on your local public housing authority’s utility allowance (UA) to determine your rents, those allowances are probably significantly higher than what your tenants should need to pay in utilities. Why? Because the published housing authority UA is magnified due to the recent volatility in utility rates. For instance, if your utility allowance is $180 a month, that rate could increase by $20 per month or more each year. For a 200-unit property, that could equate to revenue losses of $48,000!

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Using a custom UA model can help. While it won’t completely eliminate the impact of utility rate volatility, our UA models can limit it substantially by reflecting appropriate utility use at your specific properties. If you are still using the local utility allowance, consider letting Plummer show you how we can reduce your utility allowances, reduce the impact of utility rate volatility, and increase your property’s net revenue. Remember, the first model is on us.

Plummer’s Water and Energy Efficiency Services team has delivered 1,000+ successful UA models nationwide. We keep the process simple—and offer a no-cost guarantee.

We help property owners and managers make the business case for efficiency—and support green certifications, rebate programs, and upgrades along the way.

Try a model on us → plummer.com/wees-services.

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