Out to Put a Dent in the Multifamily Universe

Apartment Budgeting: Sewer Income

We’re back. After taking a much need break in the month of November, we are back to continue our apartment budgeting series. This week’s topic – Sewer Income. Yummy. Hopefully, you’re not reading this over breakfast lunch or dinner. Not that we are going write about the intimate nature of what travels through the stacks and tight lines of your apartment buildings. Neither are we going to discuss what many of our most valued Mills Service Technicians pull out of in wall or in yard clean outs. No – we are going to talk about how to recapture some of that money that otherwise flushes through your bank account in the way of sewer expense.

Sewer Income Defined

As similarly discussed in Apartment Budgeting: Water Income, sewer income is best collected through a RUBS or Ratio Utility Billing System.

Like Water income, sewer income is derived from taking your total monthly water bill, applying a ratio formula to it and then billing it back or passing it through to your residents. Now, it is much more complicated than that simple definition but you at least you get the gist.

And, again like the water bill, it is much more complicated than simply splitting it across the respective occupied units in a given month. And, don’t be tempted to take the easy way out and settle on billing a per unit type flat rate. It’s tempting to do it this way but trust me – it’s much better to partner with a company versed in this art of ratio billing.

*Item of particular merit about utility billing – this is a highly regulated business and you are not a utility company. Under no circumstance can you bill back or pass through a number that is more than your monthly bill.

 Budgeting Strategy

Budgeting for sewer income is very similar to the way you budget for water income.

Getting Back on Track

It has been another time-consuming budget season. This is a subject that needs some serious discussion as it relates to operating property. The budget (the plan) is a necessary evil in our business. Necessary because it helps us stay out of trouble. Or, at very least helps us see it coming. Evil because it sucks and extraordinary amount of time out the business. In some respects – I think it hurts the business. Too much prep – not enough time to truly execute. But, maybe that is just my world.

In any event, have an amazing and over the top week.

M

Pic props: Hometips.com

About Mike Brewer

Out to put a dent in the multifamily universe. Love compelling conversation...