For multifamily property owners in Boston, the "city of neighborhoods" offers incredible real estate value, but it also comes with the unique challenges of aging infrastructure. One of the most pressing issues hitting the bottom line today isn't just property taxes or energy costs; it’s the price of water.
The Reality of Rising Water Rates in Boston
Over the last two decades, Boston has seen a steady, aggressive climb in water and sewer rates. The Boston Water and Sewer Commission (BWSC) implements these increases to fund critical infrastructure upgrades, including the Lead Service Line Replacement program and the maintenance of a distribution system that spans over 1,000 miles.
As shown in the chart below, the cost for both water and sewer services rose significantly between 2000 and 2023.
Source of water and sewer rates
Water Costs vs. General Inflation
A common misconception is that water rates simply rise with the cost of living. However, the data tells a different story. Since the year 2000, water and sewer costs in Boston have far outpaced the Consumer Price Index (CPI). While general inflation increased by roughly 77% by 2023, combined water and sewer rates in Boston surged by over 224%.
For a multifamily apartment building, these increases can be devastating to the Net Operating Income (NOI). When utility costs rise nearly three times faster than other expenses, traditional management strategies must evolve.
Why Traditional Water Saving Methods Aren't Enough
Most landlords start with the "low-hanging fruit" of water conservation. These are essential first steps for any multi-family property:
- High-Efficiency Aerators: Installing 0.5 to 1.5 GPM aerators on faucets can reduce sink water usage by up to 40%.
- Low-Flow Showerheads: Modern low-flow heads provide a high-pressure feel while saving thousands of gallons per unit annually.
- Low-Flow Toilets: Replacing vintage toilets with 1.28-gallon EPA WaterSense models is one of the most effective hardware upgrades available.
While these fixtures reduce the intended use of water, they do nothing to stop the unintended use: leaks.
The Silent NOI Killer: The 51% Rule
Utility Studies show that leaky toilets are the leading cause of indoor residential water leaks, accounting for 51% of reported leak causes according to the SFPUC Water Resources Annual Report 2025. A single "running" toilet, often caused by a silent, faulty flapper, can waste over 200 gallons of water per day.
In a Boston apartment building where rates are high, one malfunctioning toilet can add up to $2,700 to your monthly bill. In a 20-unit building, it only takes a few silent leaks to turn your profit margin into a deficit.
From Reactive to Proactive: The Power of Monitoring
The old way of managing water was reactive: you’d wait for a massive bill from the BWSC, then send a maintenance tech to knock on every door to find the culprit. By then, the money is already gone, and the only datapoint you have is a monthly water bill.
To truly protect your investment, Boston owners are turning to real-time water monitoring. This technology allows you to see exactly how much water your building is using at any given moment. By implementing sensors, you can receive instant alerts the moment a leak is detected.
This data-driven approach allows you to:
- Detect Leaks Instantly: Catch that 51% toilet leak on day one, not day thirty
- Improve Repair and Maintenance: Real-time data helps mainteance personal accurately find and repair issues while reducing frustration.
- Prove Your ROI: Measure the exact impact of your low-flow upgrades to see how much you are actually saving.
Conclusion
As Boston continues to invest in its water infrastructure, the cost of "doing nothing" will only continue to rise. By combining traditional conservation fixtures with modern, smart monitoring technology, apartment owners can take control of their utility expenses and safeguard their NOI.
Don't let your profits wash down the drain. Start monitoring your usage, fix those silent leaks, and keep your Boston multifamily investment thriving.