Utilities for real estate and property
A property owner or manager deals with utilities in a way few other businesses do. Some accounts are in the owner's name and some in tenants' names, and the cost is often passed on. This page explains how a utilities review applies to real estate and property businesses.
Why utilities matter for property
In a multi-unit property, the owner usually pays for shared areas: hallway lighting, lobbies, parking, landscaping irrigation, elevators and heating or cooling plants. In some buildings the owner also pays for tenant space and recovers the cost by billing back.
Turnover adds trouble. When a tenant moves out, the account should revert or close. If it does not, the owner may pay for an empty unit without knowing. A property with many units and frequent turnover makes this a regular exposure.
What a review typically examines
A partner firm compares utility bills with account records, meter data and, where relevant, tenant billing. For property, the focus is on these items.
- Owner accounts and vacant units. Whether usage at empty units is as expected and whether accounts were transferred on time at move-in and move-out.
- Common area meters. Whether a meter serves only common areas or includes tenant space by mistake.
- Rate class. Whether a multi-unit building is on the schedule that fits it. Utilities group customers into rate classes, and commercial classes often carry demand charges.
- Water and sewer. Whether irrigation water is billed for sewer when it does not enter the sewer, since some utilities allow a separate irrigation meter without sewer charges, and whether a continuous flow points to a leak.
- Stormwater and similar fees. Whether fees based on impervious area, such as paved or roofed surfaces, match the property. Most stormwater utilities base fees on it.
- Tenant billing. Where the owner bills tenants for utilities through submetering or an allocation formula, whether the method follows the lease and local rules. Some states require owners to register and follow commission rules when they bill tenants by submeter or by formula. [VERIFY: rules on utility resale and allocation in your jurisdiction]
- Closed or merged properties. Accounts for buildings sold or redeveloped.
Tip: A property manager who inherits a portfolio often finds old accounts nobody owns. A full account list by address is a good first step.
What to have ready
- A list of utility accounts by property, with meter and account numbers.
- Recent bills for each account, including common areas.
- Leases showing how utility costs are allocated to tenants.
- Tenant billing records or submeter readings, if used.
- Move-in and move-out records for recent turnover.
- Notes on renovations, new equipment or changes to building systems.
- Contacts in property management and accounting.
Photos or notes of meter locations help when a building has several meters and nobody is sure what each one serves. A short site walk with the maintenance team often settles it, and the firm can then match each bill to the right space.
What happens after you submit a request
You submit a request and a partner firm contacts you. You share bills and records, and the firm reports what it finds. You stay involved in raising corrections with the utility. Fees are set between you and the firm under its own terms. If tenants reimburse part of the cost, the firm will also want to understand how that billing works before suggesting any correction.
How matching works
Fairview connects you with a partner firm and does not review bills itself. Size decides which firm fits, and Fairview matches each request by hand rather than by a fixed cut-off. Use the larger business form, the smaller business form or the other form if you are unsure.
An independent partner firm that specializes in utilities handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Does the review look at tenant billing?
It can when the owner bills tenants. Scope is agreed with the firm. [CONFIRM: partner industry detail]
Can a review cover many properties?
Yes. A list of accounts for the whole portfolio is the best starting point.
Do tenants share in any correction?
That depends on the lease and the billing method. The firm reads both.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.