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Operating Expense Reduction Plan Part II- Reducing Water Costs

Reducing expenses continues to be a top priority at BLVD. Developing and implementing a plan to cut costs is typically one of the initial tasks we undertake upon acquiring a new property. As promised this week’s edition will feature part two of our expense reduction plan. If you missed part one, you can find it Here. Using our newest acquisition, Bella Vista, as an example, let's explore how we intend to lower water costs and analyze the effects of our water reduction plan on the property's value.

Water Reduction Plan

Retrofit Sinks

We will remove and replace the aerator with a laminar flow moderator to retrofit the sinks. Removing the aerator eliminates unnecessary obstructions in the water stream, allowing for a smoother and more controlled flow. Adding the laminar flow moderator ensures a consistent and uniform stream of water while minimizing splashing and wastage.

Retrofit Showers

We're upgrading our shower systems by installing shower heads equipped with inline pressure regulators. These regulators allow us to finely tune the water pressure, ensuring an optimal flow rate for efficiency. By incorporating this technology, we mitigate excessive water usage while extending the longevity of our plumbing fixtures. This upgrade not only reduces operational costs but also enhances user comfort and satisfaction.

Retrofit Toilets

The last part of our water reduction plan involves the installation of specialized flappers and adjustable ballcocks, each equipped with inline flow diverters, and upgraded supply lines. By integrating these components, our objective is to boost flush pressure and optimize fill rates, thereby limiting water wastage during tank refills. With 24 toilet tanks slated for replacement at Bella Vista, our initiative promises significant water savings throughout the property.

*On a case-by-case basis we will Install shut-off valves and connect new plumbing from the wall to the fixture.

Value Enhancement

We're allocating $4,500 across the first three vacant units at Bella Vista for improvements, specifically in line with our water expense reduction plan. These enhancements are projected to yield an estimated monthly savings of $600. To gauge their long-term impact, let's calculate: $600 monthly savings multiplied by 12 months equals $7,200 annual savings. Considering a 6% capitalization rate (cap rate), this results in a $120,000 increase in property value, illustrating the immediate financial benefits of our investment and the significant long-term value enhancement it brings to Bella Vista, perfectly aligning with our strategic goals for expense reduction and property improvement.

Final Thoughts

We remain committed to reducing expenses and enhancing property value not only at Bella Vista but across our entire portfolio. Through planned investments in water reduction initiatives, such as retrofitting sinks, showers, and toilets, we're not only driving immediate cost savings but also laying the foundation for long-term value appreciation. By leveraging innovative technologies and tailored improvements, we aim to optimize efficiency, improve resident satisfaction, and increase the overall value of our properties. Stay tuned for part three of our expense reduction plan series, where we will review further strategies to streamline operations and drive value.

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