Is Bitcoin Mining Energy Theft?
Energy Monitoring Made Easy
What Defines an Acceptable Amount of Energy Usage?
Is Bitcoin mining energy theft when the burden of paying the electric bill typically falls to the landlord? When a tenant decides to set up a Bitcoin mining operation the electricity bill can skyrocket. This is why landlords should monitor tenant electricity usage. If you’re a landlord then you understand how costly it can be to provide power for your tenants. Most landlords set the rent amount based on “typical” electricity usage and they tend to have a clause in the rent agreement that requires an additional fee if the tenant installs an air conditioner (another energy hog).
With cryptocurrency prices rising each year and the general excitement of a new “currency” it is no wonder that so many people are joining the Bitcoin mining craze. This is especially true if the electricity required will be paid by someone else. It seems unfair that the landlord should foot the bill simply because they didn’t better define the rules around what is an “acceptable electricity usage” amount.
The Unexpected Cost of Mining Cryptocurrency
If the electricity bill increase is minimal then it’s unlikely that the landlord will notice, but a single computer running full speed 24 hours per day 7 days per week can easily run up $1000/year in additional costs for the landlord. That doesn’t even factor in the extra air conditioner costs in the summer to remove the heat the computer generates. Now imagine that the tenant has several computers in their Bitcoin mining operation! Using some easy numbers, if we assume that a single computer power supply consumes 1000W and the average cost of electricity is $0.20/kWh that works out to $4.80/day and $1,752/year!
It’s unfortunate these days that a tenant can easily use a massive amount of electricity with impunity. Electricity theft has almost become an epidemic! Monitoring tenant electricity usage is a great way for landlords to save money, and ensure that they don’t fall victim to energy theft. Many tenants are misusing electricity and it’s hard to catch them.
Energy Monitoring Solutions for Landlords
Fortunately for landlords in this situation there is a simple solution. The first step is to install an Eyedro Electricity Monitor on each of your tenants’ electricity feeds. Typically, there is a main electrical panel in the building that has a separate breaker for each tenant so installing a sensor for each tenant is simple. Although installation can be inside the tenant’s unit it is easiest to install in the main electrical room for the building. We suggest configuring the MyEyedro monitoring service so that each tenant can see their own electricity usage at any time. It certainly removes any question about usage because the tenant can easily turn their appliances and lights on/off and see the results in real-time. Finally, it is a good idea to update rent agreements to clarify what is considered “acceptable electricity usage” vs what crosses the line and may require an additional fee. This last point is better left to the lawyers but you get the idea.
If you’re a landlord and have experienced “energy theft” from a tenant we’d love to hear your story.
Give us a call and we will help you select the electricity monitoring solution that is right for you!
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Contact us today to set up a free demo of the Eyedro system, and let a member of our team walk you through the entire process.