Carmelo Milio - How can we lower heating expenses and be more efficient?
May 23, 2011 - Brokerage
In April, oil prices rose to $114.18 a barrel, their highest level since 2008. In the midst of an economic recovery our industry has been dealt a crippling blow with the high cost of oil. Unfortunately, these prices are beyond our control but what we can do is regulate the usage and waste of this precious commodity. In this article, I would like to touch on a few techniques that managers, owners, and boards may use to help keep cost down and increase the efficiency of their properties.
"How can we lower our heating expense and be more efficient?" is the question that continually tops the list when speaking with board members and owners about their expectations of a property manager. At Milio Realty we have made this request one of our primary focuses. We have developed a strategy and plan that allows us to track the usage and efficiency of each and every property we manage. Some important components of our approach include preventative maintenance, annual property inspections, weekly usage tracking and annual benchmarking.
Property managers should be able to perform all of the above tasks; for managers at Milio Realty, this type of expertise is mandatory. This policy ensures that the manager can easily identify energy waste and put into place the proper preventative maintenance and inspection schedules so each property can begin saving.
Usage tracking enables the identification of a possible hot water leak or discrepancy with oil deliveries. Tracking must be done weekly to ensure that, should there be an issue, it is resolved before it becomes critical. Scheduling preventative maintenance and property inspections will certify that all units are in compliance with your policies. These inspections can also help identify flaws at the property such as drafty windows and hot water losses. In addition to these practices, we have found that upgrading old heat timer systems can better monitor the distribution of heat throughout the building and the amount of fuel used. These systems are considered capital improvements and some companies will guarantee to lower fuel bills as a result.
N.Y.C. Local Law 84 (LL84) states that by May 1st all N.Y.C. buildings over 50,000 s/f must submit their first annual energy benchmark to the Department of Finance. Benchmarking for smaller properties is also valuable for owners, boards, and managers. We feel it should be a voluntary in-house task as it allows for a comparison of your properties' usages with the industry averages, furthering your ability to distinguish proper oil consumption and any losses. Our goal for all the properties we manage is to be below the average in usage and continue as an industry leader in energy efficiency.
Milio Realty Corp. is proud to announce it has made its first move into N.Y.C. management this year. We are excited about this new opportunity and look forward to bringing our successful strategies to owners in N.Y.C. as we have done over the past 34 years in Westchester County and Connecticut.
Carmelo Milio is the president of Milio Realty Corp., Yonkers, N.Y.