What is the impact on NOI?
If you are in charge of energy management, ancillary services, asset management or site operations in the multifamily industry, you are probably concerned about energy expenses and their impact on NOI. In the past 10 years, many multifamily owners have implemented energy-efficiency programs ranging from water conservation to lighting retrofit aimed at lowering energy consumption and, ultimately, utility costs. In addition, many have adopted other ancillary programs such as water bill back (RUBs or a submetering system) and Vacant Cost Recovery (VCR) programs to reduce utility operating costs. These energy-efficiency practices certainly have positive impact on NOI.
