By Zev Stern & Nathan Winkler

Water is typically wasted one drop at a time, but invariably adds up to significant costs!

Reducing water and sewer bills is one of the few strategies left for multifamily building operators to improve their cash flow. The water and sewer bills for a typical 100 unit multifamily building can easily top $80,000-$90,000 annually and represent a significant part of the operating costs. Most of the time, this cost can be cut by more than 15% – 25% with the proper strategy and show a quick return on investment.

Today the cost of operating multifamily buildings is beset with uncontrolled and unpredictable expenses due to issues ranging from rent-controlled tenants, increases in property taxes, and complying with municipal regulations. Although the water and sewer rates have significantly increased over the last few years, water costs can be controlled to some degree. Installing low-flow showerheads, low-flow faucet aerators, low-flush toilets, and repairing leaks, are a few of the basic measures an owner can use to regain control of their investment, and improve the cash flow of their building.

Implementing a water conservation program begins with a comprehensive water audit. Every toilet flapper, showerhead, faucet, and accessible water pipe should be considered to see if it’s leaking or operating correctly and second, to see if there is a cost effective replacement. For example, one building in central New Jersey with approximately 150 units that underwent this process ultimately realized savings of about $3,000 per month after a complete water audit and a scope of work that included replacing all of the existing 2.5 GPM showerheads with low flow 1.75 GPM showerheads, replacing all of the existing 2.0 GPM faucet aerators with low flow 1.0 GPM faucet aerators, fixing small leaks discovered on kitchen and bathroom fixtures, and replacing the toilet fill valves and flappers on many of the toilets. These savings are realized across multiple types of water fixtures.

An additional source of savings from water conservation that is often overlooked is reductions no the fuel bill. Domestic hot water flows out of showerheads and faucets, so when the GPM of these fixtures is cut by more than half, there is a commensurate drop in the domestic hot water consumption and fuel usage, though these results vary depending on the efficiency of the boiler. As much as a 5% drop in fuel consumption from installing low flow fixtures has been observed in many buildings and the opportunities are even greater depending on the boiler configuration.

Between water, sewer, and fuel savings, the costs of water conservation projects described here are typically recouped in as little as 6 to 18 months. While the selection and installation of water efficient fixtures can be fairly straightforward, the main cost in projects with a strong return on investment are typically associated with the labor involved in conducting a high quality water audit and implementation of a scope of work to improve the situation. An experienced water conservation contractor should bring the attentiveness to the job that ensures that every leak is detected and fixed properly.

In as much as new water efficient fixtures can save money, they are only as good as the product and installation. If the proper products are not selected, the results can potentially be counterproductive, as adequate velocity and comfort need to be considered to achieve cost reduction, while maintaining tenant satisfaction. At Green Light, our primary focus and goal is to achieve these objectives. To learn more please call 732-312-5550.