Utility costs can quietly drain a homeowner’s association (HOA) budget, especially when it comes to shared spaces, such as clubhouses, pools, entryways, and green areas. Left unchecked, utility bills in these areas can quickly become unaffordable. As a result of increasing utility costs in your common areas, your Board may be forced to cut into your reserve or raise assessments.
Fortunately, your HOA does not have to choose between reducing costs and maintaining a high-quality living environment. Use the approach described in this article, and you will be managing your utility costs in common areas in no time.
What Utility Costs are Common in Community Common Areas?
Regardless of the size or type of community, if it has common areas, you can expect to incur the following utility expenses.
- Electricity: Most of your common areas will require electricity. It will be used to light pathways, entrances, signage, parking areas, and power clubhouse HVAC systems and equipment.
- Water: Water is consumed heavily in landscaping irrigation, especially in hot climates. However, you will likely see a higher water bill if your community has a pool, common area restrooms, or laundry rooms.
- Natural gas: Your HOA may use this resource to heat pools, clubhouses, or water systems in colder climates.
- Wastewater/Sewer: You will need to pay a utility fee for wastewater or sewer expenses if your community buildings or amenities use shared plumbing or water infrastructure.
Tips for Managing Common Area Utility Costs
Reducing utility expenses starts with understanding how and where energy and water are being used. Once you have that information, you can take practical steps to manage your expenses.
Use the following tips to monitor and reduce your common area utility costs.
- Conduct a utility audit. Your Board should review your past utility bills to identify trends or spikes in usage. You should consider your energy usage over the last couple of years to see the trends clearly. This utility audit can help your Board pinpoint problem areas and prioritize upgrades.
- Switch to energy-efficient lighting. One of the most cost-effective yet beneficial things you can do to reduce your energy costs is to install energy-efficient lighting. Replace traditional light bulbs with LEDs in outdoor spaces, signage, and common areas. You may also want to consider installing motion sensors, timers, or dusk-to-dawn lighting controls to avoid unnecessary power drain you less-used spaces.
- Install smart irrigation systems. Overwatering is a top source of waste in communities. Use Smart irrigation controllers and rain sensors to adjust your watering schedules and conserve water.
- Schedule preventative maintenance. Do not put off maintenance tasks until something breaks. By that point, the bill to fix the issue will have risen significantly, and the system will have probably been a drain on your utilities for some time. HVAC systems, water heaters, and pool pumps should be regularly maintained to ensure they operate efficiently.
- Partner with a professional HOA management company. An experienced management company, such as ACRI Community Realty, can help your Board track utility trends, recommend upgrades, and coordinate vendor relationships that lead to real cost savings.
Contact us today to learn how we can help your Board invest smarter in your community’s future.
