Why Real Estate Companies Are Automating Bill Collection
Insights from property management firms that made the switch to automated utility data—and what they learned along the way.
Property management is undergoing a quiet revolution. While headlines focus on PropTech innovations like smart locks and virtual tours, some of the biggest efficiency gains are happening in back-office operations—specifically, utility bill management.
We spoke with property managers across the industry to understand why they're moving away from manual bill collection—and what results they're seeing.
The Tipping Point
For most companies, the decision to automate wasn't driven by a single factor. It was an accumulation of pain points that finally became impossible to ignore:
"We had a 300-property portfolio and two full-time employees doing nothing but utility bills. When one went on maternity leave, we realized how fragile our process was. Bills piled up, late fees accumulated, and tenants started complaining about allocation delays."
The common triggers for automation include:
- •Rapid portfolio growth that outpaces staff capacity
- •Key person dependency where one employee holds all the utility knowledge
- •Audit findings revealing inconsistent bill documentation
- •Acquisition due diligence requiring historical utility data that doesn't exist
- •ESG reporting mandates from investors demanding energy consumption data
Case Study: Mid-Atlantic Multifamily Operator
The Challenge
With properties spread across 6 states and 40+ utility providers, the AP team spent 3 weeks each month just on utility bill processing. RUBS calculations were delayed, tenant billing was inconsistent, and historical data was scattered across file cabinets and email inboxes.
The Solution
Implemented automated bill collection for all utility accounts, with parsed data flowing directly into their property management system via API integration.
Results After 6 Months
Case Study: National Student Housing REIT
The Challenge
Student housing has unique utility challenges: high turnover, per-bed billing requirements, and strict timing around academic calendars. Manual processes couldn't keep pace with move-in/move-out cycles.
The Differentiator
Beyond basic collection, they needed real-time usage data to identify which units were consuming excess utilities—critical for managing tight operating margins in the student housing sector.
Key Outcomes
- Identified $180K in annual utility rebilling opportunities
- Reduced move-out billing disputes by 67%
- Enabled real-time dashboard for asset managers
- Supported ESG reporting for institutional investors
What They Wish They'd Known
We asked these companies what advice they'd give to others considering automation:
"Start with your messiest providers first"
The utilities with the worst portals cause the most manual work. Automate those first for maximum impact.
"Clean up your account data before implementation"
Automation amplifies data quality issues. Take time to verify account numbers and service addresses upfront.
"Involve your AP and asset management teams early"
They'll need to adapt workflows. Getting buy-in early prevents resistance later.
"Don't underestimate the reporting value"
Most teams focus on collection efficiency, but the analytics capabilities drive ongoing strategic value.
"Plan for the exceptions"
Some bills will always need human review. Build processes for handling edge cases.
The Competitive Pressure
Perhaps the most compelling reason to automate: your competitors already are.
"When we're competing for new management contracts, the first question owners ask is about our reporting capabilities. Having real-time utility data across the portfolio isn't a nice-to-have anymore—it's table stakes."
Industry surveys suggest that among institutional property managers:
Getting Started
If you're considering automation, here's a pragmatic approach:
- Audit your current process. Track time spent per account, error rates, and late fees for one month.
- Inventory your providers. List every utility account, login credentials, and portal quirks.
- Define your data requirements. What fields do you need? Where should data flow?
- Start with a pilot. Select 20-50 accounts to test automation before full rollout.
- Measure everything. Compare pilot results against your baseline to build the business case.
Ready to See Automation in Action?
We'll show you how Vespine handles your specific utility providers.
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