In this instructional video, Shafiq Hirani CCIM explains how utility leaks—particularly water and sewer—can silently erode a property’s Net Operating Income (NOI) in master‑metered buildings. He outlines a simple detection rule (a >15% increase in water/sewer charges over three consecutive months) and describes two levers for addressing the issue: reduction (auditing the past 12 months of utility bills for unreversed spikes) and recovery (using RUBS or submetering where legally permissible). A real‑world case study shows how a $500 repair of a slow supply‑line leak saved nearly $9,000 annually, dramatically improving the owner’s NOI. The video also directs viewers to related resources—a vendor‑contract video, a downloadable NOI Leak Audit checklist, and a free diagnostic call‑to‑action.
Chapters
If there is one area where I consistently find the most money the fastest, it is utilities. Water. Sewer. Common electric. Most owners know their utility bills are high. Very few know exactly why. Here is how this works in a master-metered building. You receive one bill for the entire property. That bill goes up. You pay it. But you do not always know whether the increase is seasonal, structural, or a leak. A single undetected slow leak in a toilet, a supply line, an irrigation system can cost $6,000 to $12,000 per year. In most cases, it runs for months before anyone investigates. Here is the threshold I use. If your water or sewer bill increases by more than 15% over 3 consecutive months, that is almost always a leak or a billing error. That is worth investigating before anything else. There are 2 sides to the utility lever: reduction and recovery.
On the reduction side, pull the last 12 months of utility bills and look for spikes. A spike that does not reverse is almost always a physical problem. On the recovery side, if your building is master metered and your state allows it, you may be able to recover utility costs through an RUBS program Or submetering. Many owners are entitled to this and have never set it up. I worked with one owner who had been paying a water bill that crept up over 18 months. She assumed it was rate increases. When we pulled the billing history, the pattern was clear. The increase started in a single month and never reversed. A plumber found a supply line leak in the crawl space that had been running slowly for over a year. Repair cost, under $500. Annual savings from fixing it, just under $9,000. That one discovery changed her NOI picture completely. First, watch video 4. It covers vendor contracts and turn time. Second, download the NOI Leak Audit. Area 2 is the utilities checklist. Third, want help reviewing your utility billing history? Book the free diagnostic below.
