Utility cost recovery is critical to maximizing a multifamily property’s NOI. Non- payments and late payments impact cash flow and the homeowner or property manager’s ability to properly budget. COMMON UTILITY BILLING MISTAKES Of course, several factors impact utility cost recovery. But arguably, the most important – resident billing itself – is too often overlooked. Why does billing matter so much? The answer is a mix of logistical and psychological factors. Even a 6 LEARN BEST PRACTICES FOR UTILITY RECOVERY
simple mistake in your billing system can end up costing thousands. Avoid these common utility billing errors to keep your investments healthy:
- Mistake # 1 - USING THE WRONG UTILITY PRICING
You can't recover the right amounts from your residents if you're using the wrong utility rates! And those rates increase regularly. If the rate rises but you don't stay on top of the changes, you'll be responsible for the difference. Verifying prices is just too simple to overlook, requiring only a monthly check for each utility.
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