Utility Management Process
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- Shana Houston
- 6 years ago
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1 Utility Management Process Utility management is one of the most important tools we have to reduce expenses and increase our bottom line. Currently utilities represent 12.4% of or revenue. Simply put, for every $1.00 we collect, $.12 comes off the top to pay for the utilities at our properties. So, in a 12-month period, if we were to average 2.1 million, per month in collections; we would spend $3,124,800 annually for utilities! The industry standard is 10% or below; in this case if we reduce our expense by 2.4%, we will realize a savings of $75,000. The senior teams have worked very hard to bring as many tools as possible to your Toolbox in order to assist you in managing your property s utility bills and thus increasing your Cash Flow. Here are the programs underway: Properties are being introduced to the RUBS program whereby all utilities in each apartment will be paid by the resident, (where feasible). 1. We have completed a unit by unit inspection and noted areas which require: a. Repairs due to leaks b. The installation of water saving devices c. The installation of more energy efficient equipment d. Filters 2. We have completed an exterior building inspection noting: a. Water leaks b. Lighting that needs to be on timers/or timers that need to be reset c. Bulbs/fixtures that need to be changed out 3. We have created a Vacant Unit inspection report and process to ensure that: a. The AC in all vacant units is not set below 78 degrees b. The windows in a unit are closed, so we don t air condition the outside! c. To ensure all leaks are fixed immediately d. To ensure all running toilets are fixed immediately e. To ensure the lights are turned off unless someone is in the unit 4. We have created the Utility Lever Report by property a. This report shows the areas that each team needs to pay close attention to in order to reduce the expenses in each category b. This is a live report, meaning that the billings and collections will be reflected in this report and very soon become a part of APS 5. We have created a Weekly Deep Dive Agenda for teams to follow; this includes the perfect time to review all utility levers with the team and discuss progress and areas needing improvement, as well as documenting owner of each lever/action item 6. We have defined the process for the roll out for Renewals; New Leases; billing review and collection The following pages provide the details of how you and your team will manage and complete each step in the outlined process.
2 RUBS: What the heck is RUBS and how does it work? RUBS: (Ratio Utility Billing System)- Tzadik uses YARDI= YES and CWE A Ratio Utility Billing System allocates the property s actual utility bill to the residents based on an occupant factor, square footage factor, or a combination of both. RUBS How It Works It is not always possible to install a sub metering system at a property due to plumbing and electrical configurations as well as the initial cost of the capital investment. Faced with these restraints, apartment owners may use the RUBS utility billing method to recover utility costs from their residents. This is a fair and legal (in most states) system when sub metering is not feasible. The advantage of implementing a RUBS program is that it requires no initial capital investment and it will avoid intrusion upon entering each resident s apartment to install a meter. Simply put, the overall bill for each meter, is reduced by 25% for the common areas, (this is an expenses that is borne by the property) and then divided by the number of bedrooms/apartment each month and a bill is created, charged on the resident s ledger and sent via US mail, to each resident. Utility Savings Device Roll Out When: Now and Annual Review Who: Manager/ Maintenance Supervisor 1) Properties Instruction on the purchase and installation of utility saving devices a. Timing installation- Once per year i. Utility Savings worksheet is sent to each property; 1. Teams walk each unit noting what items need replacement 2. Worksheet calculates total needs 3. Regional Maintenance Supervisor (RMS)orders materials and sends to each site 4. Site personnel install savings devices b. Plan for long term- i.e. hot water tanks; ac units etc. i. Decided by corporate and added to special projects/capex 1. Communicated to team by RMS Vacant Unit management: When: Daily Who: Maintenance Supervisor
3 1) Daily Walk of all vacant units a) Form to use- Vacant Unit Check Sheet form attached b) Action- Maintenance Supervisor- walks the vacant units each day, checking the items noted on the Vacant Unit Check Sheet c) Corrects and/or submits a work order for corrective action d) Discusses findings with team during huddle/weekly deep dive meeting Exterior Inspection: When: Weekly Who: Maintenance Supervisor 1) Form to use- Weekly Exterior Walk Checklist Form attached 2) Action- Maintenance Supervisor walks the exterior of the property checking condition of items on the Weekly Exterior Walk Checklist 3) Corrects and/or submits a work order for corrective action 4) Discusses findings with team during huddle/weekly deep dive meeting Monthly Purchase Enhancements: When: Monthly- first week of the month Who: Maintenance Supervisor 1) Replace 3-5 exterior security lights with LED bulbs; working within property s budget 2) Replace interior light bulbs with LED in: a) Offices b) Common areas c) Maintenance shop d) Pool *Alex and Richard will call the property s on the last week of each month in order identify supplies required and complete orders as necessary. Renewals When: 120 out from lease expiration Who: Community Retention Manager, Assistant Community Retention Manager or Leasing Retention Specialist 1) Notification to residents renewing their lease a) Letter to use- use the Dear Valued Tzadik Community Resident letter, attached b) Timing- minimum 60 days- 120 out from the date of the residents lease expiration {different requirements for Section 8 and Tax Credit communities, check with your regional manager for timing} c) Follow up i) , call, visit- Shut the back door! (1) Make one contact follow up every ten days
4 New Move Ins When: Immediately Who: Community Retention Manager, Assistant Community Retention Manager or Leasing Retention Specialist: 1) New Move Ins a) At time of application- review the policy and discuss with all applicants b) Blue Moon Lease/addendum- review with the new resident c) Copy of actual utility account with account number for file- must include with the lease file, cannot deliver keys to the resident without written proof Property Billing Process When: Who: 1. Obtain actual proof, (in writing from utility company with the actual account number), from each new move in prior to giving the new resident the keys 2. Contact utility company and transfer the utility out of the property name 2) Reviewing the Billing from YES/CWE a) Reviewing the resident charges each month i) Make sure occupied units are not in the property name ii) Check to see if there are outliers in the bills (1) Really high bills could indicate leaks in the case of water bills (a) Have maintenance check unit for leaks (b) High electric bills could indicate illegal usage of the unit (c) Have maintenance check unit for illegal activity Utility Bill Collection Process When: Who: 1. Pull Yardi Aged Receivable Report by Charge Code a. Review open payables and make direct contact with each resident to secure payment Utility Lever Reporting Tool-APS When: Daily Who: Community Retention Manager and Maintenance Supervisor What: Review the Utility Tab on the APS report daily: Your property column always the same in the APS. FACTORS Row pools & Laundry Room, specifies what amenity s your property has that would affect the utility billing amounts (if & how many pools, laundry rooms your property has) August # Active Billings, Current month the number of resents that are billed for utilities
5 July # Active Billings, comparing last month number of residents billed 1. Did the number of billed residents increase over last month? 2. The increase number billed needs to reflect the same amount of all new-leases and renewals! August # Inactive Billings, Current month the number of resents that we don t bill for utilities July # Inactive Billings, comparing last month number of residents that where not billed 1. Current month the number of billed should decrees DELINQUENCY EOLM (end of last month) what the utility company billed the property last month. MTD (month to date) current month what the utility company billed the property. 1. If there is a large discrepancy between both months billing, start asking why? July Amount Billed, how much we billed the residents last month August Amount Billed, how much we billed the resident s current month 1. Current month billing needs to increase EOLM Utility CAM/ Reimbursement, how much we collected (for utilities) from the residents last month MTD Utility CAM/ Reimbursement, currently how much we collected from the residents 1. Current month collections need to be greater than last month. As the month progresses the collections will increase. Potential Tenant Collections remaining, how much more remaining to collect from the residents. 1. This row is crucial! Collect all this money! Weekly Deep Dive Meeting When: Weekly Who: Community Retention Manager leads team review/discussion 1. Same Time Same Place each week with the entire team; a. Review each item on the Deep Dive Report and fill out b. Have APS open and in view of entire team c. Create action items: i. WHO/WHAT/WHEN d. Follow up on action items each week
6 Vacant Unit Check Sheet order Property Name Performed By Check All faucets, toilets; if a leak is found shut off water valve and submit work Date UNIT No.# A/C Set to 78 Check For Water Leaks Breakers Off/Exce pt Refrigerat or and A/C Close Blinds Work Order Needed Signature
7 Weekly Exterior Unit Check Sheet Check All Buildings Exterior Faucets for leaks-remove handles and install locks. Look for water leaks on valves for buildings. Check to insure exterior lighting is not on during the Day. Property Name Performed By Date Building No.# Check all water valves Look for water seeping from ground Check For Water Leaks on main lines Check all exterior lighting Work order Needed Date Work Order Completed Signature
8 Revised Deep Dive Agenda/Notes Property: Week ending: Good News: Staff related, recognitions, from residents, resolving resident complaints (list each one): Share best practices (list each one): Numbers: 1. APS in front of TV a. Yardi Open: b. Make ready board: i. All should match (Yardi and APS numbers): 2. MTD Vacancies: Vacant Walk Results for Week: 1) Is it correct? Total, actual unit numbers, correct: 2) Vacant: 3) How many are ready/not ready Do you know numbers: 4) Not Ready? When will they be ready: 5) Cost to make ready (use snap shot) *Maintenance Superintendent should have report Exterior Walk results for Week: Utility Bill Versus Collection of
9 Leasing: 1. Pipeline: (1) All traffic entered? (a) Walk-ins: (b) Craigslist: (c) Internet: (d) Referrals: (2) Follow up: Notes in pipeline with dates: (a) Yardi Dashboard- Yes/No 2. Pre Leases: (1) Approved: (2) Real Money and assigned to unit? $150 (3) Dates Firm move in dates, make ready date in line? 3. Renewals: (1) Daily Activity (2) All Notices out 60 days (3) Dashboard 120 day s out (4) Best Practice- notice given Manager must contact (5) Notice to vacate review Collections: 2) MTD/ SDLM? (1) # of residents who owe $$$: (2) $$ Potential to collect: (1) Manager must have DQ in front of them: (2) Small balances: (3) HAP: (4) Utilities: (5) 3 day sent: (6) sent to evictions: (7) Action steps for this week $(2%): Concessions $$ Reasons 1) Number requested: a) Reasons: b) Action to reduce: s for the next week: WHO:
10 WHAT: WHEN: WHO: WHAT: WHEN: WHO: WHAT: WHEN: Maintenance: Budget $$$$$: (1) What is your R&M budget: (2) How much do you have left on your R&M Budget: (3)What is left on your Special Projects Budget: (4)Is there an error in your Budget : (5)How will you end the month on the budget: (4) Are there any life saftey Issues on your Site: (5) Are there any emergencys on your site we should know about: Comments/Explanation:
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