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Posted about 8 years ago

"Stealing" utility dollars to increase cash flow

The best-kept secret in multifamily design, construction / rehab, and operation is the adoption of European Passive House energy performance, and diverting tenant utility dollars from energy companies to the building owner.

The tenant pays the same amount for rent and utilities as in conventional buildings, but in the Passive House building, the landlord pays the very low utilities -- and banks the difference between the dollars paid to the landlord by the tenant and the small amount the landlord pays to the utilities.

Buildings that perform to Passive House can be difficult to construct, but Passive House prefabrication removes that obstacle.  For rehabs, it's all about the choice of contractor.

Low-cost, railroad-adjacent property can be used, because occupants won't even notice the train horn or the track noise with Passive House construction.


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