Mastering Multifamily Utilities: A Guide to Better Cost Recovery

Five strategies to reduce costs, recoup expenses, and strengthen NOI

State of multifamily growth: why expense control matters

Multifamily investment can be a stable and profitable long-term venture — but only with intelligent management. Apartment owners and operators must stay attuned to competition, changing industry trends, and cost-saving opportunities. The impact of mindful management results in steady growth and accumulated profits year after year.

One of the most valuable lessons in property management is to understand that increasing revenue sources (i.e. rent) is not always the best path towards higher profit. While a typical multifamily profit margin is 8-12%, a $1 increase in rent only adds about $0.10 of profit to your bottom line. In contrast, a $1 reduction in expenses adds a full $1 to your profit.

In practice, cutting costs not only adds directly to profits but also lowers the expense ratio, which improves Net Operating Income (NOI) and the overall bottom line. By finding ways to cut costs and recover expenses, your multifamily portfolio can improve profit margins and ensure long-term financial success.

Learn how improving cost recovery strategies for utility management — a regular top three multifamily expense — helps build NOI, improve profitability, and boost the overall bottom line. Read Zego's Mastering Multifamily Utilities: A Guide to Better Cost Recovery.

Find out how Zego Utility simplifies utility expense management and resident billing by scheduling a demo with one of our utilities experts.