What’s your share of this $22 billion industry - wide problem?
A recent study of utility theft reveals huge opportunity for savings, especially as electricity rates soar.
Preventing utility losses can add $330,000 in property valuation
A recent independent study*revealed that the typical 300-unit property is losing an average of $67 per unit to electricity theft (based on 15 cents per kwh pricing). If that loss is prevented, NOI increases by $19,985 and valuation goes up by $1,117 per unit at today’s 6% cap rate. That’s an increase of $330,000 in valuation for just one property of 300 units.
As the study shows, multifamily owners in Texas are paying as much as $67 million per year for electricity expenses that should be paid by their residents. Extrapolated to 20 million apartments nationwide (at an average cost per unit of $67), the multifamily industry is losing up to $1.3 billion annually in unrecovered electricity costs alone. At today’s 6% cap rate, this translates to as much as $22 billion in lost property valuation. This negative impact will grow as electricity costs escalate.
For a complete study report, get a free copy of our CSASecure® White Paper: Why Other Vacant Cost Recovery Programs Are Not 100% Effective.
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