22 Unit Building, Santa Monica
The subject property consists of 22 units containing 27 toilets. A WaterR8 System was installed on June 6, 2016. In addition to The WaterR8 Toilet Leak Detection System, a WaterR8 Mirror Meter was installed between the city meter and the building. The Mirror Meter allows real-time tracking of water flow to the property for all purposes. It is the Blue Line on the graph below. Along with a couple of minor leaking toilets, one toilet was identified which was leaking in excess of 8000 seconds, approximately 135 minutes, per day (see graph, Gold Line). We designate these gross leaking toilets as “rogue” toilets. The chronic leakage was caused by a defective flapper valve. In addition, it had one stuck open event on 6/27 resulting in almost 3 hours of continuous run time. On 7/9, the toilet was repaired and water usage dropped, on average, 774 gallons per day as indicated. As can be seen on the chart, this one rogue toilet was using 33% of all the water, being used by all the tenants, for all purposes.
In effect, fully one third of the water bill, costing just over $250.00 per month, was being consumed by the hidden overhead of one rogue toilet. The cost of the WaterR8 System for this size of property would require an investment of only $2,650.00 which, in this case, will be recaptured in just over 10 months. Applying a 5% CAP Rate to the $3,000/year water cost savings equates to $60,000 in lost Net Worth if the apartment complex is either sold or refinanced with status quo operating expense.