Hamilton’s Decade Long Water Rate Increases: What you need to know - 2025
In the coming decade, residents and businesses in Hamilton, Ontario, will be feeling the effects of a significant increase in water rates. Starting with a hefty 10% rise to water prices in 2023, the city plans to raise water rates by double-digit percentages annually, potentially doubling or even tripling the cost of water for homeowners and multi-residential property owners by the early 2030s. As a property owner, particularly in multi-residential buildings, this trend raises serious concerns about operational costs and net income margins. For owners of multi-residential properties, water is one of the most significant utility costs, particularly in buildings with large numbers of tenants. As water rates increase, property owners will inevitably see their water expenses rise—potentially by hundreds or thousands of dollars monthly, depending on the size of the building and the number of units. These rising water costs can have a direct impact on net operating income (NOI), which is a crucial metric for assessing the profitability of a property. If water costs outpace the ability to increase rents or pass on costs to tenants, the owner’s bottom line will suffer. Furthermore, the long-term predictability of such costs becomes an even greater challenge when coupled with inflationary pressures and uncertain future rate hikes.
How to Mitigate the Impact of Rising Water Rates
Fortunately, there are proactive strategies that multi-residential property owners can implement to manage these escalating costs. By investing in water-saving technologies and maintenance practices, property owners can reduce their water consumption, ultimately lowering their water utility bills and protecting their NOI.
Fixture Retrofits: One of the most effective ways to reduce water consumption is by replacing outdated fixtures with water-efficient alternatives. Simple upgrades, such as low-flow faucets, showerheads, and toilets, can drastically reduce the amount of water used per unit, often by 20-40%. Installing modern, high-efficiency fixtures across common areas, as well as in individual rental units, can lead to significant savings over time. These retrofits not only lower water consumption but also reduce energy costs, as less water needs to be heated and pumped. For example, installing low-flow showerheads can reduce shower consumption by as much as 50% minimizing heating fuel used at domestic hot water boilers. Even switching to low-flow 3 litre toilets and reducing toilet water usage eliminates the pumping of water to your property and improves the emission GHG that would have been associated with that energy
These changes are not just beneficial for the property’s operating costs but can also be marketed as sustainability features to prospective tenants, which may be appealing in a city like Hamilton that is placing increasing emphasis on environmental responsibility.
Leak Detection and Mitigation: Water waste from leaks is often a hidden culprit in rising utility costs, especially in older buildings. Leaks in pipes, fixtures, and even underground systems can lead to significant water loss and consequently higher bills. Many property owners are unaware of the extent of the issue until it manifests in their utility bills. Investing in leak detection technology or conducting regular audits can uncover hidden leaks before they escalate into larger problems. Detecting leaks early, whether they are small drips or major underground ruptures, helps prevent unnecessary water waste and reduces the risk of expensive emergency repairs. Products like LeakPRO, a motion sensing toilet shut off valve that turns off the flow of water to toilets when no user is present, offer security from toilet flapper failures and surprise water bills. Additionally, adopting a proactive maintenance schedule for fixtures and plumbing systems can ensure that any potential leaks are fixed quickly before getting out of hand.
Education and Tenant Engagement: Property owners can also play a role in encouraging water conservation through education and communication with tenants. Simple practices like incentivizing the reporting of leaks promptly, reducing water usage during peak hours, and being mindful of water-heavy activities (e.g., long showers, running taps) can go a long way in reducing overall consumption. To foster a culture of sustainability, consider providing tenants with tips and incentives for conserving water. Property owners could offer gift cards, run contests or offer other benefits to tenants who consistently maintain low water usage, creating a win-win situation for both parties.
Despite the city’s plans for increases, careful planning and investment in proven water efficiency, property owners can not only navigate these increases but turn them into an opportunity to enhance the value of their properties, improve sustainability, and provide tenants with a more environmentally conscious living experience. The future may be uncertain, but with the right strategies in place, the impact of rising water rates can be minimized—helping to ensure a profitable and sustainable future for multi-residential property owners in Hamilton.
Let Water Matrix be your water conservation partner and show you how you and your property can save. Our FREE water savings review/audits can deliver detailed information about your sites usage and how much water and money you can save.
Reach out to our water conservation team today and book your free property to start the process. You have nothing to lose but water cost!
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