water | Ashworth Partners

UPDATE Oct. 14: See below for Part 3-

UPDATE Sept. 24: See below for Part 2-

Apartment building investment broker ABI Multifamily’s Research Director, Thomas M. Brophy is out with part 1 of a pretty in-depth ‘overview’ of water rights in Arizona this week (Part 1 of 3). This is important not just because most of AZ is a desert (duh) but because Phoenix is expected to grow by the size of Denver over the next twenty-five years (See Phoenix population to add 2.6 million by 2040, housing supply not keeping up). They’re going to need a lot more apartments but the biggest limiting factor will be the ability to provide water for that many new tenants.

Water rights critical for Arizona apartment building investors — Source: ABI Multifamily.

Brophy begins with the background so that as the story unfolds we will understand how things got to be the way they are, and most importantly, how to make sure your residents aren’t walking to the town well every morning with a big jug on their heads. Not light reading but it just might give you an edge- See part 1 here: The Motions, Notions and Commotions of Water! Part 1: Arizona Water, an Overview.

Water Rights for AZ apartment building investors — Source: ABI Multifamily

Part 2 is Continue reading Apartment Building Investors: Everything You Need To Know About AZ Water Rights, Parts 1, 2 & 3

In a study by Dupre+Scott they found a growing number of apartment building investors in the Puget Sound region are charging tenants for water, sewer and garbage which make up can make up a pretty large chunk of operating expenses:

Two-thirds of the properties we surveyed pass through water and sewer charges to residents, and 50% also pass through garbage costs. The average monthly water/sewer charge in the region ranges from $46 for studios to $70 for three-bedroom units. Adding garbage charges increases costs to $55 for studios and $90 for three bedroom units. Our March Apartment Expense Report found that utility charges paid by residents increased 50% between 2008 and 2012.

Do you or have you considered charging for water and sewer via sub-metering, individual metering or a RUBS system? how about garbage? Continue reading Charging apartment building residents for water, sewer AND garbage- the growing trend.