Property Management Best Practices
Solving Common Utility Setup Challenges for Properties
Zac Maurais
February 26, 2025
Ensure utilities are set up on time.
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Managing utilities for properties can be a hassle, but modern tools and strategies can save time, reduce costs, and even create new revenue opportunities. Here’s a quick breakdown of the key takeaways:
By adopting these strategies, property managers can streamline operations, improve tenant satisfaction, and boost profitability.
Handling utility transfers manually often leads to delays and extra administrative work. Considering that utility costs make up 10–20% of operating expenses, improving this process is a no-brainer [2]. Modernizing these systems addresses the inefficiencies tied to older, manual methods.
The traditional way of managing utility transfers - think paper forms, phone calls, and manual data entry - comes with its own set of headaches. Here's a snapshot of the common issues:
| Challenge | Impact | Business Risk |
|---|---|---|
| Data Entry Errors | Wrong account details and billing info | Payment delays and tenant disputes |
| Communication Gaps | Missed deadlines during transitions | Property owners covering extra costs |
| Documentation Issues | Lost paperwork and incomplete records | Problems with compliance and audits |
Switching to automated solutions can sidestep these challenges entirely.
Automation is changing the game for utility transfers. For instance, Homebase rolled out Automated Utility Transfers for Multifamily in 2022. This tool, integrated with WattBuy, simplifies utility selection for tenants during move-ins and automates move-outs in states like Texas, New York, and Pennsylvania.
"Automating the utility billing, payments and reconciliation process results in measurable time returned to property managers that can be spent on attracting and retaining residents or other more valuable projects." - Zego [4]
When evaluating utility management software, look for features like:
One standout option among these tools is Utility Profit.
Utility Profit addresses common hurdles in utility transfers through automation. It integrates with property management software and offers:
For example, RealPage Utility Management reported a 14% annual improvement in billing collections [3], showing how automation can deliver real results. Utility Profit even offers a free plan, giving property managers access to these features while earning commissions from tenant utility activations.
Managing multiple utility accounts can be a logistical headache, draining resources and impacting profitability. This makes efficient utility management more important than ever.
Handling several utility accounts manually comes with a range of issues:
| Challenge | Impact | Business Risk |
|---|---|---|
| Decentralized Management | Inconsistent practices across properties | Missed payments and billing errors |
| Time-Intensive Processing | Reduced productivity | Delayed tenant move-ins |
| Data Tracking Complexity | Limited visibility of expenses | Poor financial planning |
| Account Changes | Hard to track new setups and closures | Service interruptions |
These problems grow as property portfolios expand. Industry data shows that companies adopting centralized utility management solutions often recover up to 30% more in utility expenses [6]. A centralized system simplifies operations and minimizes these risks.
Using a single platform for managing utility accounts can transform operations. Centralized systems automate bill retrieval, provide real-time account tracking, integrate with existing tools, and consolidate reporting. To get the most out of these systems, property managers should look for platforms offering features like automated invoice processing and advanced data management tools [5].
Utility Profit is a great example of how centralization can streamline utility management. Key features include:
The platform’s free plan provides access to these tools while generating extra revenue through tenant utility activations. This setup not only ensures accurate utility billing but also helps with budgeting and compliance [5].
Utility setup delays can disrupt operations and lower tenant satisfaction, impacting nearly 30% of projects [8].
Several factors often lead to utility setup delays:
| Delay Factor | Percentage | Impact |
|---|---|---|
| Plan Errors & Omissions | 33% | Incorrect specifications that require rework |
| Incomplete Utility Data | 23% | Missing or inaccurate facility details causing setbacks |
| Scheduling Issues | 11% | Delays in utility company response times |
Supply chain issues add to the problem. John Bitely, President of Sable Homes, highlights this challenge:
"Consumers power is frustrating because they won't schedule the job based on your schedule date. They wait until you're ready to go, then they say, 'Oh I'm sorry, we don't have that stuff on order,' or, 'We don't have it.' Shame on them" [7].
Property managers can take these steps to minimize delays:
Clear communication and consistent follow-ups are key. Digital tools can make these processes even smoother.
Digital platforms have revolutionized utility setup management. These tools provide:
Property managers often miss out on turning utility management into a source of income. By rethinking how utilities are handled, it's possible to shift from simply managing costs to generating profits. Recent data highlights how utility setups can become a steady revenue stream.
Most traditional utility setups focus solely on activating basic services, leaving potential earnings on the table. Many property managers see utility management as just another task, but they could be tapping into opportunities like:
There are now partnership models that allow property managers to earn directly from utility services. Here’s a breakdown of potential earnings:
| Revenue Source | Potential Earnings |
|---|---|
| Connected Water Heaters | $20/unit annually |
| New Construction Incentives | $70/unit one-time |
| Internet/Cable Agreements | Variable commission |
To unlock these earnings, specific installations or agreements with providers are necessary.
"Kevin and his team found a way to negotiate contracts and bring huge revenue to our property that we did not even know was possible" [12].
Platforms like Utility Profit make this even easier by integrating revenue-sharing options into everyday utility management.
Utility Profit offers property managers the chance to earn around $50 for every successful move-in [13]. Key features include:
This approach transforms utility management into a profit-generating system.
"When your everyday appliances become income-earning assets, your building is worth more. Our program is an easy way to increase your net operating income, raising the overall market value of your property" [11].
For instance, a 300-unit property using connected water heater programs could earn up to $6,000 annually [11]. Combine this with other revenue sources, and the financial potential grows significantly.
To maximize these opportunities, property managers can:
These steps not only increase revenue but also enhance property value.
Effective utility management is key to improving operations. By adopting advanced utility management systems, property managers can achieve more than just cost savings - they can turn utility challenges into revenue opportunities while streamlining processes. Automated solutions, like Utility Profit, have shown how technology can simplify utility setups and boost efficiency.
A structured plan delivers clear results. Residential complexes that use utility management checklists report better energy usage and higher tenant satisfaction [1]. Key contributors include real-time tracking, automation, software integration, and revenue-sharing agreements.
With these insights in mind, here are some practical steps to elevate your utility management approach.
Now is the time to focus on actionable strategies that combine efficiency with revenue growth. Technology is shaping the future of utility management, as demonstrated by solutions like Utility Profit. Automation minimizes errors and creates new revenue opportunities.
| Focus Area | Implementation Strategy | Expected Outcome |
|---|---|---|
| Automation | Use digital tools for tracking and billing | Fewer manual errors and time savings |
| Data Analysis | Monitor consumption patterns regularly | Smarter decisions for cutting costs |
| Revenue Generation | Partner with utility service providers | Create new income streams |
| Compliance | Update utility protocols frequently | Stay compliant and avoid risks |
Streamline back-office processes and prioritize transparency. This enables staff to dedicate more time to resident-focused tasks while improving the efficiency of utility systems. Incorporating smart building technologies and energy-saving equipment can further cut costs and increase property value.
Start by evaluating your current practices, then implement targeted automation solutions for better results.
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