Should You Implement Water Conservation Plan in Apartment Investing?

What's a water conservation plan?

It's when you buy a property that is usually older and replace things like low flow shower heads, toilets with less water per flush, sink faucets, check for leaks, etc. This reduces the water expenses and saves water.

Should you implement it?

Often the cost of replacing the toilets, shower heads, faucets, etc doesn't make financial sense for the small savings you make.

If tenants are paying for the cost of the water that they personally use, then it might not make financial sense. You're the one who spends the money for the replacements and get no benefit. You'd have to make the replacements, take the water bills in house and then charge the tenants back a certain rate which is around what they're paying now.

When does it make sense?

It will always make sense to check for leaks. Leaks aren't just a cost towards your water. They can damage a lot in your property.

If you've run the numbers and the savings in your water bill is worth replacing all the needed fixtures.

If there is a special green incentive. For instance there was a loan program that gave you a lower interest rate if you went into a property and got it up to specific water and energy efficient standards. Sometimes you can get things like grants for the cost to replace toilets to low flow as well.