Property managers know that when you save energy, you save money and improve your profit margins. Many do their best to track energy usage and employ energy-saving measures. However, tracking and reducing energy consumption is no simple task, especially when you consider that the average building wastes about a third of the energy it consumes.
That’s where energy management software comes in. By harnessing the power of big data—all that information your buildings generate every day—these tools can help you understand exactly where energy is being used and wasted. In this post, we’ll explore how energy management software works, what features to look for, and how to use data-driven insights to make your buildings more efficient.
Understanding Energy Management Software for Property Managers
Energy management software is a digital platform that helps property managers monitor, analyze, and control energy usage across their rental properties—a critical task, as the real estate industry accounts for approximately 40 percent of global combustion-related emissions. It transforms raw utility data into actionable insights, showing you exactly where energy is being used and wasted so you can reduce costs and improve efficiency.
Adding Context to Big Data
‘Big data’ refers to the multitude of information we generate every day. Data is nothing new; but because we now generate it on such a grand scale, we can glean useful insights by tracking and analyzing it.
For example: Your energy bill gives you a rough idea of your energy usage each month. However, because of the number of unknown variables, that’s hardly enough information to inform large-scale changes. By comparing that information with historical data and other information, however, you can uncover trends.
Many property managers use energy-efficient equipment to reduce their energy bills. For example, Michelle Cooper, senior property manager at Property Management, Inc. says, “To manage energy costs, we make sure our heating and central air systems are as efficient as possible, we install energy efficient appliances into our properties, and perform routine preventative maintenance.”
But how do you know that any energy savings were the result of a more efficient HVAC system and not another factor, such as an unusually mild summer? By comparing your energy usage data to weather data, you can verify the cause.
Collecting Detailed, Immediate Data
If you want data that’s more detailed than your utility bills can provide, you can use big data technologies to get it. Advanced data collection methods can give you highly detailed and near-real-time information.
Advanced data collection methods give you detailed insights into energy usage:
- Building Energy Management Systems (BEMS): Automatically track electrical, mechanical, and plumbing systems
- Sub-meters and Sensors: Monitor energy usage of specific systems or appliances
- Smart Meters: Connect to the internet for immediate access to usage data
- Connected Appliances: Smart thermostats provide precise, localized data
These technologies could help you to identify systems that are using comparatively high amounts of energy, or to quickly notice defects that are causing usage spikes and repair them. Some utilities companies also have programs to help you to manage and reduce your buildings’ energy consumption.
If you want more detailed energy usage information, you may be able to work with your utility company to obtain it. Some of them have programs to help you manage and reduce your buildings’ energy consumption.
Key Features Property Managers Should Look For
When you start looking at different software options, certain features will be more helpful than others for managing rental properties. Here are a few to keep an eye on:
- Real-Time Dashboards: You need to see what’s happening with energy use right now, not just last month. A detailed dashboard gives you a quick overview of consumption across your entire portfolio.
- Automated Alerts: The software should be able to notify you of unusual spikes in energy use. This helps you catch maintenance issues, such as a running water heater or faulty HVAC unit, before they become expensive problems.
- Reporting Tools: You’ll need clear reports to share with property owners. Look for software that can generate easy-to-understand summaries of energy savings and costs.
- Mobile Access: As a property manager, you’re rarely at your desk. Mobile access in property management platforms like Buildium enables monitoring and notifications for operational tasks (e.g., maintenance, communications); energy-usage alerts require an energy management tool.
Setting Actionable Goals and Verifying Value
Energy management software helps you set specific, measurable goals instead of vague objectives:
- Specific Targets: Set exact energy reduction percentages
- Clear Timelines: Define when you want to achieve savings
- Focused Areas: Identify which systems or properties to prioritize
Big data also helps you track your progress—which can increase building energy efficiency by as much as 30 percent—and you can share this data with employees or residents to encourage them to continue to save in order to reach the desired target.
Even when you do achieve your goals, however, if you don’t have access to detailed data, it’s sometimes hard to know whether your energy-saving initiatives were worthwhile. A lack of reliable data and the potential presence of mitigating factors can cause you to doubt the impact you’ve had.
However, when you track financial data in addition to data related to your goals, you can identify exactly how much your usage and costs changed, then determine which changes led to any savings you’ve achieved. This enables you to confirm the value of your energy-savings initiatives, which will help you to plan and justify future projects.
In addition to setting goals for your future energy usage, big data can help you to make energy usage a part of your business strategy by anticipating your future needs. Through data analysis, you can model possible future scenarios that include variables like increased occupancy, building expansions, the use of new technologies, and changing weather patterns. Then, you can plan financially and logistically to meet those needs.
Calculating ROI and Measuring Success
Investing in new software always comes down to return on investment (ROI). The good news is that energy management software is designed to help you prove its own worth; in fact, a cost-effectiveness analysis of these technologies showed a one- to two-year simple payback period. By tracking your energy consumption before and after implementing the software, you can calculate your direct cost savings, with studies showing a median energy savings of 4-9% within two years of installing these systems.
This data is powerful. It not only shows you how the software is paying for itself but also gives you the information you need to justify the expense to property owners. When you can show them exactly how much money a new HVAC system or smart thermostat installation saved, it makes planning for future efficiency projects much easier.
Choosing the Right Energy Management Software
Choosing the right energy management technology depends on your data complexity and portfolio size:
- Simple Data Tracking: Use spreadsheets for basic monthly usage information
- Advanced Analytics: Invest in specialized data management software for detailed building energy management
- Integrated Solutions: Consider platforms that combine energy monitoring with property management features
Whichever technologies and energy-saving initiatives you choose to implement, using big data to manage building efficiency can lead to big savings. And when you combine these insights with comprehensive property management software, such as Buildium you’ll have both the data you need to craft your strategy and the tols to put it into motion.
Want to try Buildium out for yourself? You can give it a spin with a 14-day free trial or by signing up for a guided demo.
Frequently Asked Questions About Energy Management Software
What does energy management software do for property managers?
Use an energy benchmarking/management tool to monitor energy use portfolio-wide from a single interface. This allows you to spot inefficiencies, reduce utility costs, and make data-backed decisions about maintenance and upgrades.
How much does energy management software cost for rental properties?
Pricing often depends on the number of units you manage and the features you need. Some platforms charge a monthly subscription fee per unit, while others offer tiered packages. It is best to get a custom quote based on your portfolio.
What types of energy management software work best for multifamily properties?
For multifamily buildings, look for software that offers sub-metering capabilities, which is especially important as research shows that multifamily rental housing expends 39 percent more energy per square foot than owner-occupied multifamily properties. Submetering can track energy at the unit level and for shared building systems (e.g., lighting/equipment) that serve common areas, giving you a much clearer picture of where your costs are coming from.
How long does it take to see ROI from energy management software?
Independent studies (e.g., DOE/LBNL) commonly report measurable EMIS-driven savings over one to two years, with typical simple paybacks in the 1–2 year range. The timeline varies based on portfolio size and current energy efficiency.
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