Multi-Housing News - August 2009 - (Page 38)

kitchen & bath Go Green for Lower Operating Costs Concentrating on savings in kitchens and baths may be your best bet yet to reduce expenses By Keat Foong, Executive Editor Fuel and water are some of the biggest operating expenses in any apartment property. Since energy and water are most used in kitchens and baths, property owners and developers concerned with minimizing operating costs should pay careful attention to conservation measures in these two areas of the apartment home. Energy conservation specialists Nancy Hovind and Rhonda Kreitz offer some advice on resource management. Their company, Energy Advisory Services, based in Kennesaw, Ga., consults with clients on energy conservation and is a national aggregator of gas and electricity on behalf of its clients. “Most owners are asking us how they can go green without spending trillions of dollars to get LEED (Leadership in Energy and Environmental Design)-certified,” says Kreitz, vice president. Hovind, president of Energy Advisory Services, says that developers of new construction or rehabilitation projects should consider the use of natural gas. “Natural gas is, at this point, and always will be, the most fuel- and energy-efficient,” says Hovind. It is an abundant natural resource, compared to fossil fuel, and there are estimates the country could be sitting on 100 years’ of still-untapped natural gas supply. “We stress to our clients: think about gas first, and see if it fits your plans,” she says. Kreitz argues that it is a misconception that natural gas costs more than other forms of energy. Electricity costs 17 cents per kilowatt hour, while natural gas is billed at about $1 per therm hour. But the average vacant apartment uses 400 kilowatts of electricity or 12 therms of gas. This translates to far bigger bills incurred by the use of electricity. And in new construction, there will generally be no extra costs for the developer to bring in gas lines; some states will even provide rebates or other incentives for these installations, Kreitz says. In terms of water use, Hovind singles out the hot water tank as the “single biggest user” of energy. “The hot water tank is heated constantly to keep the water hot at all times,” she says. Apartment owners can consider using natural gas to heat the tank, she suggests. Kreitz recommends lowering the ning toilets in a timely manner. This is a challenge, as residents often do not report leaks. However, there are certain techniques to help fight leaks, whether from faucets or toilets. Some owners hold residents responsible, but the lease has to have language in place to cover such situations, says Kreitz. Another idea is for maintenance workers to check for leaking toilets, faulty toilet flaps or dripping faucets as a matter of procedure anytime they go into a unit to perform any work, says Hovind. Kreitz also recommends taking advantage of construction or rehabilitations to check all fixtures in the entire property for leakage. In terms of fixtures, low-flow and gallon-toilets are becoming standard in retrofits and new construction. They are some of the “most effective” water-savers, says Kreitz. Submetering, which is legal in most states, is always an option. In the kitchen, all appliances should be Energy Star-certified, says Hovind. Energy Star dishwashers, for example, use half the water of normal dishwashers. Garbage disposals are another big user of water. However, they may constitute an amenity that attracts residents, so owners may not want to eliminate them altogether. Instead, Kreitz suggests owners upgrade to energy-efficient models. Owners, however, may be less willing to retrofit existing apartments with more costly appliances if those in the units still work. In these cases, new residents can be given the option to execute “green leases,” where the resident will pay a small premium per month for the apartment owner to “green” the apartment. That entails, for example, low-flow fixtures, programmable thermostats for the water tank and Energy Star appliances. MHN temperature, which can make a big difference in cutting costs. “If the hot water tank is turned down by one to two degrees, that can result in a 10 to 20 percent reduction in the electricity bill on a vacant apartment,” Kreitz says. And in a vacant apartment, a timer can be installed to shut off the hot water periodically. In tackling water heating costs, owners can also purchase energy-efficient water tanks that heat in less than an hour, says Kreitz. And in new construction, they can install tankless hot water systems, which cost more upfront but bypass the need to heat tanks, or solar-powered hot water tanks . Apartment owners should be aware that the corresponding sewage bill, which accrues according to the amount of water used, costs about three times more than water. “Probably the most important item when it comes to waste is not water, but sewer,” Hovind says. “If you reduce water usage by one gallon, you have cut costs by 300 percent on the sewer side. In some areas, sewer costs five times more than water.” Combined, water and sewer costs are generally the fourth largest item on financial statements, says Hovind. In new construction or substantial rehabilitation, property owners can install pools to collect rain water for use in toilets, for example. Such systems cut the cost of both water and sewer in one fell swoop. Additionally, owners can lower water and sewer costs by repairing water leaks from faucets or run- To comment, e-mail keat.foong@nielsen.com. MHN ONLINE Get more operations tips. Sign up for MHN’s Property Management newsletter at www.multi-housingnews.com/newsletters 38 August 2009 | Multi-Housing News http://www.multi-housingnews.com/newsletters

Table of Contents for the Digital Edition of Multi-Housing News - August 2009

Multi-Housing News - August 2009
Contents
From the Editor
Executive Insight: David Hendrickson, JLL
Market Pulse
Operations
Finance: Green Lenders
Property Management: Mentoring
Development & Design: Green
Profile: AMLI
Market Report: Florida
Kitchen & Bath: Saving Water
Products: Paints & Finishes
Technology: Resident Screening
Perspective: Leasing Practices

Multi-Housing News - August 2009