Sub-metering offers landlords a way to fairly bill tenants for the precise amount of water or gas used.
Sub-meters are utility-grade meters installed between the master utility meter and individual units. They precisely measure the amount of gas or water each unit uses, so tenants can be billed directly. Once installed, billing is no longer the landlord’s responsibility, as a quality sub-meter will provide reliable readings for years with little to no maintenance required. Wireless technology eliminates the need for manual meter readings.
Discover the many benefits of sub-meters:
Sub-metering controls costs and encourages efficiency
Utilities are notorious for killing a landlord’s bottom line. Landlords spend thousands of dollars per year on energy costs, which eats up rental income. Billing a tenant for estimated use is a best-guess approach that is unfair to both the tenant and landlord. Sub-metering accurately measures each tenant’s utility use and is the fairest approach to dividing up utility usage among multi-family units.
Sub-metering is also good for the earth. When tenants are billed for the exact amount of utilities used, they tend to use less. Residents who receive individual utility bills typically drop their own usage by 35 percent, according to numerous studies.
Sub-metering improves property value
If you want to increase your rental unit’s property value, install a sub-meter. A rental unit’s property value is based on the net operating income of a property and the market cap rate. Sub-metering increases net operating income by making utility cost a tenant’s responsibility. It reduces landlord cost, substantially increases operating income and improves the value of a rental property over time.
Is sub-metering worth its life-cycle cost?
There is an upfront cost to Install a sub-meter. However, this cost should be looked at as an investment that pays back dividends over time. The cost of installation will vary depending on the building size and the extensiveness of the sub-meters. The return on investment will increase the longer you own a property. When you decide to sell the property, it will be worth more because the question of utility billing is already handled for the next landlord.
What units can be sub-metered?
Sub-metering is ideal for natural gas and water. It can be used for any multi-family dwelling, including:
- Mobile home parks
- Student housing
- Townhouse communities
Need to install a sub-meter? Call Plumbers 911!
If you need to install a sub-meter on your rental units, call Plumbers 911. We are a referral network of licensed and bonded plumbing contractors who install sub-meters in both new and existing rental units. Our contractors employ plumbers who are highly trained in sub-meter installation to ensure it is installed correctly and will not create water damage.