Multifamily - Special Issues in Going Green

Excerpted from the new IREM Key Report, A Practical Guide to Green Real Estate Management by John Klein, JDM Associates, with Alison Drucker and Kirk Vizzier

Multifamily
In the multifamily industry, owners and operators have traditionally transferred utility costs to residents as much as possible. Naturally, as utility expenses were the responsibility of their residents, owners and operators had less of an incentive to invest in energy and water efficiency.

Recently however, multifamily residents have exhibited a higher sensitivity to rising energy costs, a higher environmental consciousness and a demand for communities where they can live a green lifestyle. One multifamily owner surveyed its residents across multiple properties in diverse markets and found that 63 percent of the nearly 2,800 respondents deem green operations important in their communities.

Another multifamily owner/operator has found an even stronger emphasis on sustainable living among its residents. Of the nearly 1600 respondents to a survey, 80 percent felt that living in a community that is working to lower its environmental or carbon footprint was important and 68 percent said they would be more willing to renew their leases if their communities were implementing green practices. All this evidence points to a fundamental paradigm shift in the multifamily industry – owners and operators are expending greater efforts to reduce resident utility costs and leveraging those reductions to offer cutting-edge, highly marketable green apartment communities.

Once a multifamily operator has committed to a sustainability program, the property type offers opportunities that are somewhat different from those in office buildings. For example:

• Multifamily properties can set new standards for energy and water efficiency with their bulk demand for appliances such as efficient washing machines and refrigerators, low-flow sinks and showerheads, and low-flush toilets. Consider upgrading these appliances and fixtures during turnovers.
• Understand how energy and water are used in your community to pinpoint no- and low-cost operational strategies that offer big savings. Set back thermostats in common areas after hours, and take advantage of occupancy sensors and timers to shut off lights in fitness centers and model units when not occupied.
• Many opportunities exist to significantly reduce the amount of potable water used for irrigation. Simply placing new expectations on landscaping contractors and educating them about your sustainability goals is a great start, but there are also opportunities to scale back irrigation schedules, install smart irrigation controls and more. Best of all, water savings from landscaping go directly to the bottom line.
• When it’s time to replace HVAC units, commit to going above and beyond the federal minimum Seasonal Energy Efficiency Ratio (SEER) of 13. Units at 14 SEER are increasingly affordable, and at today’s energy rates, have a quick payback.
• Common area lighting retrofits will shave lots of money off energy bills, given that multifamily communities are in operation at night and on weekends.
• If your community has a swimming pool or hot tub, capitalize on high-efficiency pool pumps and heaters, experiment with reducing the pool pump’s run-times, and purchase a cover to keep heated pools warm.
• Installing programmable thermostats that can automatically set back temperatures can save each apartment unit about $180 per year, according to ENERGY STAR. 

For more detailed information on how to achieve sustainability, purchase a copy of the IREM Key Report, A Practical Guide to Green Real Estate Management.