David Schwartz
Water bills are becoming a bigger concern for multifamily property owners. When water and sewer rates rise, a building’s operational costs can increase even if the number of residents stays the same. For landlords who pay these bills, higher costs can mean less profit from rental income.
The good news is that property owners can take steps to control unnecessary water use with the right water saving solutions. These solutions help reduce waste from running toilets, uncontrolled showers, and other parts of a building's plumbing system. By lowering avoidable expenses, property owners can help protect their Net Operating Income (NOI).
Let's look at why water costs matter, where water gets wasted, and how reducing that waste can help protect your property's income.
Why Rising Water and Sewer Costs Matter for Multifamily Properties
Water is an ongoing expense for apartment buildings, rental communities, and other multifamily properties. Unlike a one-time repair, water and sewer bills must be paid month after month. And those bills have been getting more expensive in many parts of the United States.
According to an October 2026 report from Food & Water Watch, typical household drinking water bills at the 500 largest U.S. community water systems increased by an average of 62% between 2015 and 2025.
Although this study focused on household drinking water bills, it shows why property owners need to pay attention to water costs.
For a multifamily building, the impact depends on several things:
- Number of units: More apartments usually mean more water being used across the property.
- Water and sewer rates: Local utilities set their own charges, which can change over time.
- Who pays the bill: Owners who cover water costs directly feel the impact on their operating budgets.
- Hidden water waste: Leaks and inefficient fixtures can increase bills without anyone noticing.
Property owners may not be able to stop utility rates from rising. However, reducing overuse of water can help keep those increases from having an even larger impact.
How Does Saving Water Help Protect Net Operating Income (NOI)?
For rental property owners, saving water is not only about conservation. It can also help improve a property's financial performance.
What Is Net Operating Income?
Net Operating Income, or NOI, is the money a property makes after paying its regular operating expenses like maintenance, property management, insurance, taxes, and utilities.
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For example, if a property collects $300,000 in annual operating income and spends $120,000 on operating expenses, its NOI is $180,000.
When operating expenses increase without more income coming in, NOI decreases.
That is why controlling water expenses matters.
How Lower Water Bills Can Improve NOI
Let's say a multifamily property spends $40,000 each year on water and sewer bills.
After fixing sources of water waste and installing suitable water saving devices, the owner reduces those expenses by 15%. Here is what that could mean:
|
Expense |
Annual amount |
|
Water and sewer costs before improvements |
$40,000 |
|
Water and sewer costs after improvements |
$34,000 |
|
Annual operating savings |
$6,000 |
|
Potential annual NOI improvement |
$6,000 |
Note: This is an example, not a guaranteed savings result. It assumes rental income and other operating expenses stay the same and does not include the cost of installing the devices.
In this example, the property keeps an additional $6,000 each year by spending less on utilities. That money can help cover other property expenses or improve cash flow.
For a closer look at the financial connection, see how water expenses affect your property's NOI.
Where Do Multifamily Properties Waste the Most Water?
Before choosing water saving products, property owners need to understand where water is being wasted.
Some problems are easy to see. Others may continue for weeks without attracting attention.
Here are four areas worth checking.
1. Running Toilets and Hidden Leaks
A toilet can keep using water even when nobody is using it. This often happens when an internal part, such as the flapper or fill valve, stops working correctly. Water keeps moving from the tank into the bowl, and the tank continues to refill.
In a multifamily property, several unnoticed running toilets can lead to substantial water waste.
2. Uncontrolled Shower Water Flow
Some showerheads allow more water to flow than needed. Water pressure may also vary between floors or apartments, making it harder to maintain consistent water flow.
Without proper control, showers can use more water and hot water than necessary.
3. Water Wasted During Shower Warm-Up
Think about what happens when someone turns on the shower and waits for warm water. During that time, water runs down the drain without being used for bathing. When this happens across many apartments every day, the total waste can become significant.
4. Building-Level Water Flow Issues
Water costs can also be affected by conditions in a building's main water supply system.
Changes in pressure, flow, and meter performance may influence how water moves through the property and how much is recorded. These issues require a different approach from fixing a leaking toilet or changing a shower fixture.
The EPA WaterSense program recommends assessing fixtures, appliances, and water systems to identify opportunities for reducing water and energy use.
A property water assessment can help owners decide which improvements are worth making first.
Water Saving Solutions That Help Lower Property Operating Costs
Once the main sources of waste are identified, property owners can choose devices that address those specific problems.
The Water Scrooge™ offers several water saving solutions for multifamily buildings, rental properties, and commercial facilities. Each product works in a different part of the plumbing system.
1. Shower Flow Controllers to Reduce Excess Water Use
The Shower Scrooge™ Shower Flow Controller limits the amount of water passing through a shower while keeping the experience comfortable for residents.
It is installed behind the shower fixture, making it difficult for residents to access or remove.
The device also responds to changes in water pressure to help maintain a more consistent flow.
By controlling excess flow, property owners can reduce both water use and the amount of hot water needed during showers.
For buildings with many bathrooms, this provides a way to manage shower water use without asking every resident to change their habits.
2. Toilet Leak Prevention Devices to Limit Continuous Water Waste
The Toilet Scrooge™ Leak Prevention Device fixes running toilets and helps property owners add an extra layer of protection against toilet water leaks.
It is a motion-activated, water-powered device installed on the toilet's water supply line.
When someone uses the bathroom, water is supplied to the toilet tank. When the bathroom is vacant, the device automatically shuts off the supply.
The device does not replace the need to repair a faulty toilet, but it can limit the amount of water wasted before the problem is fixed.
3. Smart Valves for Building-Level Water Flow Management
The Water Scrooge™ Smart Valve™ is designed to manage water flow at the building level. It is installed on the property's side of the main water meter and adjusted to match the building's water system.
The Smart Valve compresses air in the water flow, which may reduce the amount of air volume recorded by certain water meters. This can help address avoidable billing costs in suitable water systems.
Unlike toilet and shower devices, the Smart Valve serves the building's main water line and should be installed by a licensed plumber.
4. Hot-Water Saving Devices to Reduce Warm-Up Waste
Water used while waiting for a shower to warm up often serves no purpose. ShowerStop® is designed to reduce this waste.
When shower water reaches approximately 95°F, the device automatically reduces the flow to a trickle. Once the resident is ready to shower, they activate the control to restore normal water flow.
This helps prevent warmed water from running down the drain while someone is away from the shower.
For landlords looking for practical water saving solutions, the best choice depends on where their property is losing water and what is driving their utility bills.
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How Water Savings Reduced Operating Costs At 144 East 22nd Street in New York, a 46-unit building was spending approximately $57,312 per year on water and sewer costs before participating in The Water Scrooge™ conservation program. The property saw a substantial annual savings of approximately $30,000, based on water, sewer, and hot-water costs after installing our Toilet Scrooge™ devices across its units.
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How Can Property Owners Start Reducing Water Costs?
You do not need to change every plumbing fixture in your building at once. A good multifamily water saving plan starts with understanding current water use and fixing the biggest problems first.
Step 1: Review Your Water and Sewer Bills
Collect several months of utility bills and look at how much water the property uses.
Check for sudden increases, higher-than-normal usage, or unusual changes between billing periods.
If possible, compare the same months from different years so seasonal changes do not affect your results.
Step 2: Check for Hidden Water Waste
Inspect toilets, shower fixtures, visible pipes, and other water-using equipment.
Ask maintenance staff to pay attention to toilet shut-off valves that keep running or fixtures with unusually high flow.
If the building has detailed meter data, look for water use during times when demand should be low.
Step 3: Choose the Right Water Saving Devices
Match each solution to the problem it is meant to address.
For example, a property with frequent running toilets may benefit from automatic toilet water control. A building with high shower water use may need shower flow controllers.
Choosing the right products is more useful than installing devices without knowing where the waste is coming from.
Step 4: Compare Results After Installation
Track water use after improvements and compare it with earlier readings.
Look at gallons used as well as the total bill. This matters because utility rate changes can make bills increase even when a property is using less water.
You should also consider the cost of the devices, installation, and any ongoing maintenance when measuring the financial return.
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Calculate How Much You Can Save Property owners can use the Water Scrooge™ Water Savings Calculator to estimate potential savings before deciding which improvements to make.
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Lower Water Waste and Protect Your Property's NOI.
Rising water rates may be outside your control, but unnecessary water waste does not have to be.
The Water Scrooge™ offers a range of water saving products designed to help multifamily property owners control water use, reduce avoidable utility expenses, and protect their operating income.
With the right solutions in place, you can make better use of every gallon and keep more of your property's income from going toward unnecessary water costs.