At Entrata Summit 2024, Mark Coffman, SVP of Tech Enabled Services at Entrata hosted a panel of multifamily and proptech veterans, including Gerry Crooks, Senior Industry Principal for Utilities at Entrata, Chris Laughman, Senior Director of Sustainability and Energy at Greystar, and Dave Bailey, Chief Revenue Officer at Correlate. 

The discussion centered on the increasing importance of utility data, the impact of rising energy costs and regulations, and the role of technology in mitigating risk and improving efficiency. Key takeaways include:

• Utilities are a major expense. Utilities represent  the third largest expense for most properties and that’s only going to get worse as utility costs continue to rise, which puts pressure on property managers to find ways to control and reduce consumption.
• Accurate utility data is paramount. Accurate and granular utility data is crucial to help with future planning, resident billing, and property benchmarking in addition to the value it can provide as you consider capital improvements and work toward maintaining regulatory compliance.
• Building Performance Standards (BPS) are on the rise. As energy efficiency becomes a requirement, businesses need to take into account the impact that will have on future operating expenses.  If businesses fail to meet requirements there may be substantial fees incurred.
• Proactive planning is essential. Meeting BPS requirements and mitigating the risks of rising energy costs require proactive planning, data analysis, and most likely significant capital investments.  But when weighing potential fees involved it is likely worth the capital investment.
• Sustainability and ESG are key considerations. Investors are increasingly focused on environmental, social, and governance (ESG) factors, making sustainability a key driver of property value and long-term viability.
• Technology can help. Solutions like Entrata's Utility Management platform and Correlate's data analytics tools help property managers track energy consumption, identify opportunities for improvement, and implement strategies to reduce costs and improve efficiency.

Looking Ahead:

The panel emphasized the need for property managers to:

• Embrace data-driven decision making. Utilize technology and data analytics to track consumption, benchmark performance, and identify opportunities for improvement. Bailey noted Entrata is a helpful resource to get your data in order. He stated, “I would strongly recommend that you start talking to them more seriously about getting this data shared (with you).”
• Stay informed about regulatory changes. Keep informed about evolving BPS and other regulations that could impact their properties.
• Consider third-party ownership models. Explore options like Power Purchase Agreements (PPAs) to hedge against rising energy costs and secure long-term price stability for solar products.
• Prioritize resident engagement. Educate residents about energy efficiency and encourage them to adopt sustainable practices.

Learn more about how Entrata can improve utility management at your properties by requesting a demo today.