How to cut operational costs in property management
Despite a tough financial climate, now is the perfect time to invest in energy efficiency. But how do you know where there’s energy to be saved? And how do you calculate how fast these investments will pay off?
In today’s economic landscape, property owners face a multitude of challenges. Financial uncertainties, rising operational costs, and growing environmental concerns all weigh heavily on the minds of those responsible for managing real estate portfolios. However, there’s a silver lining to these challenges, and it comes in the form of energy efficiency.
How to cut costs in uncertain times
In times of financial turbulence, it’s natural to focus on immediate cost-cutting measures. But if you embrace a broader and more strategic perspective, you’ll realise the immense potential of energy efficiency investments. Energy-efficient buildings are not only more environmentally friendly but also significantly cheaper to operate in the long run (especially if energy prices keep soaring like a hot air balloon).
Reducing operational costs is vital for maintaining financial stability, especially in the face of economic uncertainties. Energy-efficient buildings offer a sustainable solution to this challenge by delivering substantial energy savings, which translate directly into reduced operational expenses. In essence, every euro or pound invested in energy efficiency today can lead to substantial cost savings down the line, ultimately contributing to your bottom line.
When we had reduced our energy use by 50%, we could calculate that it also meant a cost saving of SEK 200 million a year.
Anna Denell, Sustainability Director at Vasakronan
Sustainability – the green advantage
Beyond the immediate financial benefits, investing in energy efficiency allows property owners to embrace sustainability and meet the growing demand from both tenants and investors. Green and sustainable buildings are no longer a mere trend; they are a necessity in today’s environmentally conscious world.
Sustainability has become a key criteria for tenants looking for spaces that align with their values. Energy-efficient buildings not only appeal to environmentally conscious tenants but also command higher rental rates and occupancy rates. They stand out in the market as a testament to responsible and forward-thinking property management.
Furthermore, investors are increasingly looking for sustainable assets to add to their portfolios. Sustainable properties not only offer stable long-term returns but also align with the broader sustainability goals of institutional investors. By making your buildings green and energy-efficient, you not only attract tenants but also make your properties more attractive to potential investors, thus enhancing the overall financial stability of your real estate portfolio.
So the old saying “you’ve got to spend money to make money” rings true. Or in this case; spend money to save money.
Calculating the fastest return on investment
Some energy-saving improvements will be small and easily done, while some might require a bit of an investment. But how do you know where there’s energy to be saved? And how do you calculate how fast these investments will pay off? These are questions you need to answer in any project – but it’s even more important when the budget is tight.
To ensure that you put your money where it will yield the highest ROI, you need a critical puzzle piece: high-quality energy data. Understanding how energy is consumed within your buildings is the first step in identifying low-hanging fruit for energy efficiency improvements.
By having granular data of your buildings’ energy use, you can rest assured that you’re making the right energy-saving investments. And that is precisely where Metry can help.
Let data lead the way
Our full-portfolio data collection gives property owners reliable insights into their energy consumption. By leveraging advanced technology, we give you the data you need to identify inefficiencies, optimise energy usage, and reduce waste. With Metry, you gain access to a treasure trove of energy data that enables you to make informed decisions and take precise actions to enhance energy efficiency across your portfolio.
In times when the budget is tight, investing in energy efficiency is not only advisable but also essential. It’s the key to cost savings, sustainability, and long-term financial stability in the property management industry. By making your buildings energy efficient, you future-proof your business and position yourself as a leader in the market.
Talk to us if you want to know how we can help you access the energy data needed to make the right investments and drive your properties toward a greener, more profitable future.
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What data do you need?
Download the product brochure and find out how Metry can help you access your energy data.
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