Utility Management Checklist

Most utility providers require a recorded deed, a signed management agreement, or a letter of authorization (LOA) before they will move an account into the firm's name. Pull the document from the property file before calling the provider — most providers will not accept verbal authorization on a recorded line.

Walk the meter locations and record the provider, account number, and meter ID for electric, gas, water/sewer, trash, and any submetered services. In deregulated markets (TX, PA, OH, parts of IL/NY) the wires/distribution company and the retail energy provider are separate accounts — capture both.

For tenant-paid units, request automatic landlord-revert (LRP) so the account flips back to the firm the day the tenant closes service. Frozen pipes during vacancy with utilities off is a recurring claim — keep gas and electric on through winter make-readies.

Add the account to AppFolio, Buildium, or Yardi with the GL code, owner, and property mapping. If the firm uses a bill-pay aggregator (Conservice, NWP, Yardi Utility Expense Management), submit the LOA so invoices flow electronically rather than by paper.

Download invoices from each provider portal or the bill-pay aggregator on a fixed cadence — usually the 5th of each month, after most billing cycles close. Match each invoice to a service address and meter ID before posting.

Compare current usage to the trailing 12-month average. A 50%+ jump usually means a leak (running toilet, slab leak, irrigation valve stuck open), an estimated read, or a meter swap. Flag estimated reads — providers often catch up with a large true-up on the next cycle.

Open a dispute case with the provider, request a re-read or leak investigation, and send a maintenance tech to check for visible leaks at the meter, water heater, and irrigation manifold. Most providers will issue a leak adjustment once with documentation of the repair invoice.

Schedule ACH or check release at least 3 business days before the due date. Late fees are typically 1.5% per month plus reconnection fees if service is disconnected — both are non-reimbursable from owners and eat directly into management margin.

For RUBS (Ratio Utility Billing System) properties, run the formula from the lease — typically square footage, occupant count, or a hybrid. CA Civ. Code §1954.201 and several other state statutes require disclosure of the allocation method in the lease; allocating without disclosure exposes the firm to refund claims. Post the charge to each ledger by the lease-stated billing date.

Pull 12 months of consumption per unit and benchmark against ENERGY STAR Portfolio Manager or comparable units in the portfolio. Top-quartile water consumers almost always have a hidden leak; top-quartile gas consumers usually have an old water heater or thermostat left at 75°F during vacancy.

For owner-paid utilities, low-flow toilets (1.28 GPF), aerators, LED retrofits, and smart thermostats typically pay back in 18-36 months. For tenant-paid utilities the savings flow to the resident, not the owner — propose these only when the marketing benefit (utility-included caps, tenant retention) justifies the spend.

Send the owner a one-page summary: scope, vendor quote, projected annual savings, and payback in months. Include any available utility rebates (most water districts and gas utilities offer $50-200 per fixture). Owner approval over the management agreement's spending limit must be in writing before issuing the work order.

Send a one-page tenant guide each quarter — set the thermostat to 78°F summer / 68°F winter, report leaks within 24 hours, run dishwasher only on full loads. Frame conservation around their RUBS bill or direct-paid bill, not as a generic ask.

Spring and fall PM visits — coil cleaning, refrigerant check, condensate line flush, filter swap. A clogged condensate line dripping into a unit below is one of the most expensive avoidable claims; the PM visit costs less than one drywall repair.

Sediment buildup is the leading cause of premature tank failure (5-7 years instead of 10-12). Schedule the flush during a make-ready when the unit is vacant rather than disrupting an occupied tenant.

No-heat in winter and no-water any season are habitability emergencies under most state warranty-of-habitability statutes — same-day response or the tenant gains rent-withholding or repair-and-deduct rights. Confirm whether the issue is a provider outage (call provider first) or a unit-level failure (dispatch maintenance) before assigning the ticket.

Record vendor, invoice, parts replaced, and warranty terms on the asset record in AppFolio or Buildium. At year-end, this drives the capex vs. repair determination on the owner's tax return — replacing a $400 disposal is a repair; replacing a full HVAC system is a depreciable capital improvement.

Audit a sample of active leases for the required utility allocation disclosure. CA, TX, and several other states require the formula and a 12-month historical example in the lease itself; missing language can void the right to bill the charge and trigger refunds for prior allocations.

Cities with benchmarking ordinances (NYC LL84/LL97, Boston BERDO, Seattle, Chicago, Denver) require annual ENERGY STAR Portfolio Manager submissions for buildings above the size threshold. Penalties run $500-$2,000+ per day late in NYC. Pull whole-building data via the local utility's aggregated-data portal before the deadline.

Compliance officer reviews the benchmarking submission, RUBS disclosure audit, and utility expense reconciliation before the close-out. File the signed package in the property compliance folder for the retention period required by the ordinance (typically 3 years).