Utility management is the process of receiving and processing utility invoices, tracking consumption and cost data, and identifying potential energy savings opportunities. While utilities are a necessary expense for business operations, there are opportunities for significant cost savings through effective utility management practices.
Creating a comprehensive utility management strategy is critical for property managers of all vertical industries, including hospitals, hotels and more. By implementing best practices, such as incorporating utility management into standard operating procedures (SOP) and promoting awareness to residents, you can help your building maximize the benefits of its utilities while reducing overall energy costs.
The most successful utilities have flexible billing and collections policies that are tailored to specific risk levels. For example, loyal customers that demonstrate a history of on-time payments should receive more lenient billing and collection actions, such as the ability to defer past due amounts. In contrast, new customers should be introduced to more rigorous billing and collection policies that include higher delinquency thresholds and increased late fees.
Another key element of utility management is establishing communication with tenants before they move in to ensure that all relevant information has been provided. This can be accomplished by integrating utility management into tenant move-in processes.
Lastly, by using technology like accounts payable software, you can streamline payments while providing residents with an up-to-date account status that clearly outlines their current balance and payment due date. Keeping an eye on these details can help reduce the number of late charges that are incurred, which will ultimately improve your bottom line and tenant satisfaction. utility management