Living costs are increasing every day. From electricity to water bills, many landlords and property owners are looking for a way to lessen their expenses and increase energy efficiency when it comes to managing their properties.
One example that is becoming popular nowadays is tenant or individual unit submetering. This can help property owners reduce excessive water usage problems and lower utility costs.
In this article, we will guide you through tenant submetering. Let's learn all about what it is, how it works, and which benefits it brings.
What Is Tenant Submetering?
Traditional utility metering systems bill the entire building as one, splitting costs among tenants. Utility submetering, on the other hand, tracks each unit’s water usage separately. This is possible by installing individual meters for each tenant or apartment unit.
These meters keep tabs on the actual usage of energy or utilities by each tenant or apartment unit, separate from the main utility meter of the property, making it possible for tenants to pay only for their actual water usage.
Benefits of Using Submetering for Tenants
Why should your tenants stop wasting water? Here's a breakdown.
Making Utility Bills Fair and Clear
Submetering makes sure tenants only pay for the utilities they actually use. This avoids the unfair charges often seen with systems like RUBS, where tenants share costs equally, no matter how much they use.
Promoting Lower Energy Use
Submetering encourages tenants to take responsibility for their own utility consumption. When they are directly accountable for what they consume, they tend to adopt habits that reduce energy and water use, helping the environment in the process.
Lower Operational Costs
Using less water helps property owners save money on operational costs. When tenants use water more efficiently, the total consumption in the property goes down. This also puts less strain on the building’s plumbing, reducing maintenance needs over time.
Useful Data for Better Property Management
Submetering systems give property owners precise and detailed data that help them manage their properties better. They can easily spot inefficiencies, detect leaks, and find opportunities to save water by making conservation improvements.
How Does Submetering Work?
Submetering tracks each tenant’s utility usage in multi-tenant properties, making sure they are billed fairly based on what they actually use.
Here's how it works:
Installation of submeters: Each tenant’s space is equipped with its own submeter. These submeters measure utilities like water, electricity, or gas used by that specific unit.
Data collection: The submeters are connected to a central system. This central system gathers usage data from all submeters in real time or at regular intervals.
Billing process: The submeters collect data that is used to calculate the utility usage for each tenant. Individualized billing statements are then generated, showing precise consumption and associated costs.
Accountability: Tenants can now pay only for the utilities they consume. This promotes conscious tenant usage and can help reduce overall utility costs.
Use Cases of Submetering
Where are submetering systems usually used? Let's find out.
Multi-Unit Residential Buildings
Submetering is a great fit for multi-unit buildings like apartments and condos. It makes sure tenants pay for their own usage, which can differ a lot depending on unit size, the number of people living there, and their daily routines.
Many multifamily buildings struggle to install traditional submeters because of how their plumbing is set up. Instead of having a single water main for each apartment, the pipes often run in complex and scattered patterns. This makes it hard to install standard submeters properly.
Thanks to the IoT revolution, fixture-based micrometers like those from DrizzleX offer a smart solution for buildings where standard submeters aren’t an option.
These devices provide full visibility into water usage at every fixture and send real-time alerts to address waste immediately.
Common Areas
Adding water submetering to common areas like laundry rooms, hose bibs, and sprinkler systems improves water usage efficiency and cost tracking. It allows landlords to spot areas with high water consumption and take steps to introduce water-saving measures.
Is Submetering Worth the Investment?
Is it worth your hard-earned cash, or is it just another piece of hardware that will eat your budget? Consider these points:
Long–term cost savings: While the initial setup cost may be substantial, the reduction in overall utility usage leads to lower meter readings over time. For landlords and property owners, this means a direct decrease in operational expenses.
Increases property value: Prospective tenants and buyers often consider submetering a modern, fair, and efficient utility management system.
Environmental sustainability: Submetering also contributes to environmental sustainability. Tenants who are more aware of their consumption patterns tend to adopt more eco-friendly habits, which results in the reduced overall carbon footprint of the property.
Customization and control: Submetering systems offer a high degree of customization and control over utility billing and management. A landlord can tailor billing cycles, rates, and other parameters to suit the specific needs of their property and tenants.
How DrizzleX Can Help You
Most multifamily buildings in the US lack submetering systems. However, with DrizzleX's IoT micrometers, you can enjoy the benefits of a submetering system without the need for complex installations. DrizzleX can be installed very easily even in buildings that don’t have water mains going to each apartment unit.
DrizzleX also allows you to detect hidden leaks, helping you stop millions of gallons of waste each year. It also alerts you to tenants' excessive water overuse.
Typically, buildings that use DrizzleX reduce their water bills by 25-45% or more. And you can expect a pretty quick return on investment (ROI). Buildings with DrizzleX save enough water to cover the entire cost of DrizzleX within about 9 months on average.
Start saving water and utility costs. Get your free quote today!
Usage Alerts
One of Drizzlex's solutions is usage alerts. Since many people aren't really aware of their excessive water usage, the alerts can be very helpful. With this system, you can communicate with your tenants about their water consumption habits and back them up with precise data, too.
Leak Detection
Leaks can be sneaky because they aren't always visible. With property inspection, you can see the obvious ones. But silent leaks will only show up on your utility bills. DrizzleX gives you water control because you can monitor water usage in your building.
The system will notify you about where and how much water is being lost.
E-mail Notifications
Once DrizzleX spots the leak, it will notify you via email. The message you receive will include all the details about the exact apartment and fixture that is the culprit, how many gallons were used, how much it will cost you if the problem isn't fixed, and even possible causes for the water waste and how to fix it.
Billing
DrizzleX also allows you to bill your tenants. Tenants conserve water when they are the ones paying for it. You can easily create water bills based on accurate water consumption and bill them fairly.
FAQs About Tenant Submetering
What are the disadvantages of submetering?
Submetering can be costly to install, especially in an existing building, as it may require updates to electric service systems. Maintenance adds ongoing costs, and tenants might dislike being billed separately for their actual usage, especially if it highlights higher energy consumption.
Is submetering legal in California?
Yes, submetering is legal in California, but building owners must follow state laws and local utility regulations. Tenants must be billed accurately based on individual usage, making sure there's a fair allocation of energy costs and encouraging lower energy consumption for better cost savings on utilities.
What is the point of submetering?
Water and electric submetering lets building owners bill tenants for their actual water and energy usage, making utility costs fairer. It encourages lower energy consumption and helps facility managers allocate costs effectively in a multi-tenant property.
What is the difference between a meter and a sub-meter?
A meter measures the total utility usage of an entire building or property, while a sub-meter tracks individual usage within specific units or spaces.
Building owners use meters to receive utility bills from the utility company, while sub-meters allow them to allocate costs to tenants based on their actual usage. Sub-metering is common in multi-tenant properties to ensure fair billing for energy consumption and utility costs.
