Real Estate Investor Magazine South Africa November 2019 | Page 26

MANAGING
Property owners
in deep water
SPONSORED
Prepaid water meters can
tackle the looming crisis
A
lthough most Capetonians are returning to a more
normalised water usage, they remain very aware of
their water consumption. However, the rest of South
Africa is still dealing with the effects of the recent drought,
the worst in a century, and now many other cities and towns
across the country face their own Day Zero.
Michael Franze: Managing Director at Citiq Prepaid, looks at
the current water crisis and explores how prepaid water meters
can help property owners manage an uncertain utilities future.
South Africa needs to brace itself for a steady increase in
both droughts and floods as climate change takes its toll on
global weather patterns. The Institute of Security Studies has
warned that water demand is expected to exceed supply
by at least 10% by 2035. As a finite resource, municipalities
will increasingly resort to cost as a means to manage water
consumption.
It’s clear that over the next few years, managing water,
especially in high density suburbs and estates, will become
one of the most critical requirements for property owners and
estate managers.
Knowledge is power
One of the lessons learned from the Day Zero scenario faced
by Cape Town communities was that information was the most
effective way to change behaviour. Sharing data on household
consumption really shook consumers awake. The premise is a
simple one and was also witnessed when households moved
from post-paid to prepaid electricity. Having data readily
available raised awareness and the prepaid meters inside
homes meant residents became sensitized to their utility
usage.
Granular control more effective
One of the most effective ways of curbing wastage is to have
insight and control at the household level. Prepaid water
meters have an early warning leak detection mechanism that
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NOVEMBER/DECEMBER 2019 SA Real Estate Investor Magazine
will raise a warning and so a response to rectify the faulty
plumbing. Many a resident only finds out about leaks on their
property when they are hit with punitive bills at the end of the
month. Not ideal for the environment or their wallet.
No nasty surprises
One of the biggest challenges for property owners is ensuring
their tenants pay the water and electricity bills on time. While
tenants rack up serious debt, property owners are still on the
line to pay municipalities. Delinquent tenants can end up
eroding rental profits. The pay-as-you-go method of prepaid
meters reduces this risk.
Time is money
Using prepaid meters means transactional data is at hand,
available online, and massively reduces the administrative
burden of managing properties.
Data defeats disputes
One of the key benefits of prepaid meters is the transparency.
There can be no dispute about consumption or payment
if both parties have access to the same data. This trust is
invaluable for long-term, successful relationships.
South Africa is feeling the tightening of the environmental
noose. We have always been a water-scarce country, and
managing this precious resource is imperative. In the more
immediate future, we can expect municipalities to turn to tariff
hikes as the most effective way to curb usage. Government is
already mulling a 16.5% increase and individual municipalities
will still be able to add their tariff increases on top of that.
Installing prepaid water meters sooner rather than later is a
smart move for property owners. Not only will it lower the risk
of managing the coming cost increases, but it will go a long
way to help empower families and communities to tackle the
looming water crisis.
SOURCE Citiq Prepaid