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  • Writer's picturePerceptive Things Team

Hidden Cost of Water Leaks for Multi-Family Buildings

Whether it results from a broken pipe, flooding from severe weather, or a leaky roof, water damage and leaks can cause significant problems to your multi-family building. Not only does it lead to costly repairs, but it is also associated with many hidden costs.

Therefore, this article discusses the hidden costs of water leaks in multi-family buildings and how you can prevent them. Keep reading to learn more!

Cost for Building Owners

Cost of Water Restoration

The average cost of restoring water damage in multi-family buildings is around $3,300, or between $3 and $7.50 per square foot.

However, the cost may be lower or higher depending on a variety of factors. For example, you can expect to spend as low as $300 to restore water damage from simple roof leaks and flooding mishaps.

A multi-family building owner’s average cost for restoring greywater damage is around $3,000. On the high end, restoring blackwater damage can go as high as $15,000 or more.

Here are the key factors that determine the water restoration costs:

  • Location and size of the damaged area

  • Cause or source of water damage

  • Class or type of water damage, etc.

  • Severity or extent of the damage

Insurance Costs

Water damage can have significant implications for insurance deductibles in multi-family buildings.

Due to its classification as a high-risk event by insurance companies, multi-family buildings with a history of water damage claims may face increased insurance premium costs.

The impact of water damage claims can lead to higher deductibles, making it essential for property owners and managers to address water-related issues promptly and implement proactive measures to mitigate risks.

Decrease in Tenant Retention

Multi-family buildings with a history of water damage have low tenant satisfaction rates. Besides, tenants may decide to vacate water-damaged buildings. Moreover, repairs done for damaged water may inconvenience tenants’ activities, which decreases their retention rates.

Therefore, you may be forced to elevate your service level to meet the tenant’s expectations and satisfaction.

Cost to Tenants

Loss of Personal Items

Water damage in multi-family buildings can quickly lead to the destruction and loss of many valuable and irreplaceable personal items. These may include personal documents, electronics, furniture, photographs, books, clothes, etc.

You might even have priceless items destroyed by water leaks in your multi-family building. While you may be able to utilize water restoration services, the reality is that many fragile items cannot be saved or replaced.

In many ways, water damage can have a similarly devastating effect on homes as those that have experienced a fire. From stuffed animals to photographs, the impact can often be felt for years to come.


Water damage restoration in multi-family buildings may require time. For instance, occupants or tenants may be displaced from their homes to allow for repairs, restorations, and safety checks.

Moreover, repairs and restorations done for damaged multi-family buildings may shut down or slow down the occupant's activities. This can frustrate tenants, which inconveniences them.

Health Risks

Water damage usually causes the growth of mold. The type of mold caused by water leaks in your multi-family building can lead to health issues for the occupants.

For example, black mold is linked to respiratory health problems, including coughing, wheezing, and stuffy nose. For occupants suffering from asthma, they may experience severe reactions. Therefore, mold restoration can help clear up health issues.

Moreover, wet areas in multi-family buildings can be associated with increased accidents - whether from unstable structures impacted by water leaks, slick floors, or faulty equipment.

Preventing water leaks in multi-family buildings

Water leak detection is essential in protecting your multi-family building from damage caused by water leaks. By installing water leak sensors in the right places inside your multi-family building, you can be sure your property is safe from damages and hidden costs of water leaks.

These detectors notify you whenever there is a water leakage around the detector in your multi-family building. Since these detectors react in real-time, multi-family building owners can get a comprehensive insight into water leaks in their properties.

While you may want to learn more about the best water leak detectors, here are the details of our recommended multi-family water leak sensors:

Droplet Solo™

The Droplet Solo™ is your Ultimate Water Damage Defender! With an IP-67 rating and a built-in audible buzzer alarm, this compact leak sensor is your first line of defense against water-related disasters.

Its unobtrusive design, measuring a mere 63mm x 63mm x 14mm, ensures seamless integration into any space, while its long-lasting performance on a single CR24505 battery guarantees worry-free protection for 4 to 5 years.

Droplet Duo™

This is a smart water leak sensor that includes two probes. Each probe has its own wireless notification system. The dual-probe setup allows you to cover a wide area and get separate notifications for every probe. This makes Droplet Duo™ sensors effective at detecting leaks in multi-family buildings.

Setting up this leak detector is easy as it comes pre-configured for your multi-family building and has 3M adhesive pads that easily attach to surfaces. It also has an extended battery life, which provides long-lasting water leak protection to your building.

Droplet Pro™

Droplet Pro™ is an advanced smart water leak detector designed for multi-family buildings. It includes a three-meter rope detector that allows for a wide range of water leak detection, making it suitable for equipment and basement rooms.

Its body features internal magnets for easy attachment to iron surfaces, such as beams. You can attach this leak detector exactly where you require it to sense moisture without requiring additional mounting hardware.

Droplet Pro™ is designed with an IP-67 rating to ensure it is dust-tight and can withstand water immersion for up to 30 minutes. Besides, its battery can last 4-5 years, providing long-lasting, reliable performance.

Final thoughts on the cost of water leaks for multi-family buildings

Water leaks in multi-family buildings can wreak havoc, leading to not only expensive repairs but also a host of hidden costs.

These can include health risks for occupants, inconveniences caused by disruptions, loss of valuable properties, reduced tenant retention, increased insurance premiums, and substantial water restoration expenses, among others.

The good news is that you can proactively prevent these hidden costs by implementing a simple solution: installing water leak sensors in your multi-family building. These advanced sensors act as vigilant guardians, detecting leaks early on and alerting you immediately, allowing you to take prompt action before the damage escalates.

By investing in water leak sensors, you not only safeguard your property and residents but also ensure a more cost-effective and hassle-free management of your multi-family building in the long run!

Do you have a multi-family building that has experienced water leaks? Have you thought about installing water leak sensors to protect your building from costly repairs? We'd love to hear from you in the comments section!

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