The news from California in particular and other areas in general is that we are seeing higher utility bills.

*The Clean Water Act has increased water and sewer costs to meet EPA standards

*A natural gas shortage has resulted in higher prices.

*Virtually everyone is predicting higher gasoline prices for this summer -- $1.90 to $2.00 per gallon, with an outside chance of gas prices hitting $3 a gallon.

*Dam piercing to protect wildlife is cutting electrical generation and -- of course -- increasing costs

Every utility provider -- water, sewer, rubbish, oil, natural gas, and electricity -- is feeling the dual pinch of both increased legislation and demand. Utility providers are faced with not only with more consumers, but also with federal and state regulations focused on wildlife preservation, nuclear restrictions, and emission controls as well as demands to pierce the dams.

What can the investment property owner do rising fuel costs?

Two general strategies are to enhance conservation efforts bill tenants individually for utility consumption. In addition, here are other ideas to reduce both usage and costs.

Electricity

1. Shop for longer-life bulbs that use fewer watts.
2. Use fluorescent light bulbs.
3. Ask your local electric company to inspect your building.
4. Review the most electrically efficient lights to use.

Water and Sewer

1. Install low-flow shower heads at all condo and apartment properties. Check units to assure that tenants do not replace water-saving shower heads.
2. Replace spray heads in dishwashers to reduce flow.
3. Install separate meters or sub meters for each unit, if possible.
4. Review your water and sewer expenses and, if allowed, bill increases tenants.
5. Encourage tenants to wash laundry and dishes with full loads.
6. Repair all leaks. Even small drips can produce significant usage.
7. Reduce water levels to minimize required water per load.
8. Cover pools to keep water from evaporating.
9. Repair any water leaks at pools. Turn off pumps at night. Use timers.
10. Install low flow aerators for faucets.
11. Install low flow toilets.
12. Install devices in toilets to use less water.
13. Conserve water use for landscaping.
14. Make sure every month that there are no broken sprinkler heads.
15. Monitor the soil moisture to keep from over watering.
16. Install plants that do not need much water.
17. Ask your landscapers to make property recommendations, and pay them a reward if they can save you water or sewer expenses.
18. Replace sprinkler heads with newer models that are more efficient in their use of water.
19. Have a competition with the tenants to see who can come up with the best energy-saving ideas.
20. Don't allow car washing on site, or set up a car washing station where you charge for the water.

Natural Gas

Natural gas is used heat pools, commercial spaces, and hot water heaters. Most houses use gas in the furnaces to heat.

1. Make sure you're servicing both furnaces and hot water heaters on an annual basis.
2. Change furnace filters on a quarterly basis. Plugged filters use more energy.
3. Make sure all pools heaters work properly and have no leaks.
4. Service all heaters on a regular basis.
5. Encourage the tenants to conserve.
6. See if retrofitting to other fuel uses makes sense in your area.
7. Shut down pools promptly at the end of the season (if you are in an area where pools are closed for colder weather).

Conservation practices save energy and reduce costs. If enough people begin to conserve we can reduce overall usage and thus mitigate the worst effects of a growing population and declining energy supplies.

For more articles by Clifford Hockley, please press here.

Published: April 18, 2001

Use of this article without permission is a violation of federal copyright laws.

Clifford A. Hockley is the President of Bluestone & Hockley Real Estate Services, one of the larger brokerage and property management companies in Portland, Oregon. Mr. Hockley holds an MBA Willamette University and a B.S. in Political Science from Claremont McKenna College. He is a Certified Property Manager and Bluestone & Hockley Real Estate Services is an Accredited Management Organization (AMO) by the Institute of Real Estate Management (IREM). Mr.Hockley serves as member at large on the Portland IREM board. He has twice been named Certified Property Manager of the Year (2001 and 2003) by the Institute of Real Estate Management and is a frequent contributor to industry newsletters.