The Benefits of Submetering

Submetering Saves Money and The Environment

There have been numerous studies by the National Multi-Housing Council and the National Apartment Association about Submetering. 

These studies have clearly documented the connection between utility conservation and separate billing for utility usage.

For example, these studies demonstrate that individually metered apartments often experience an 18 to 39 percent reduction in water consumption when compared with master-metered properties that include water expenses in the rent.  Rental properties that employed a RUBS allocation formula enjoyed a water savings that ranged from 6 to 27 percent.

Both the resident and the property owner benefit from utility submetering.  Residents benefit because submetering provides them with more control over their total monthly housing costs. By reducing their utility usage, they clearly save money. 

Plus, residents also benefit because they are now directly responsible for their own usage and no longer have to pay for the misuse of utilities by other residents.  And when utility expenses are reduced, property owners enjoy higher operating margins and property values.  Submetering also protects property owners from unbudgeted utility expenses.

Perhaps the biggest winner is the environment that we all share.  Since submetering and utility allocation both reduce water and utility usage, benefits abound.  There is more fresh water to go around, and less carbon in the atmosphere.  Just imagine the effect if every rental property were to institute submetering!

To learn more about Submetering, Click Here.

Check out our Green Pages for information on money saving tips that help the environment.

Planting trees, shrubs and grounds covers can save you money on energy and maintenance costs. Click here to learn more.

American Apartment Owners Association offers discounts on products and services related to your commercial housing investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing.  Find out more at www.joinaaoa.org.

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Filed under: Going Green

This entry was posted on Monday, April 7th, 2008 at 10:44 am and is filed under Going Green. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. What is Submetering? said at April 7th, 2008 at 10:50 am

   […] To read more about the benefits of submetering, Click Here. […]

2. The How-to’s of Submetering Water said at April 21st, 2008 at 8:31 am

   […] For more information on the benefits of submetering, click here. […]

3. Are You Still Allocating Utilities? said at May 10th, 2008 at 8:48 am

   […]  “On average, that will pay for itself in eight to twelve  months of costs savings over the standard allocation methods.  Submetering offers a number of benefits, from lowering your tenants’ costs so you can increase rent, to saving the headaches of calculating allocations and dealing with tenant complaints over your methods. When utilities are submetered, energy and water conservation increases by as much as 50%.  It’s also a good way to discover if there is a leaky toilet in the building, or over-consumption by a tenant.  ”We are working for a client who just learned that a tenant was using his home washer to run a commercial laundry service,” Bill explains.  The Nuts and Bolts of Submetering Utilities Small meters are placed at the main breaker, hot water heater or gas line.  A transmitter is installed to detect the readings and send the signal to a data collector. A data collection system, with an antenna and computer, receives the signal and stores the meter reading data. The data is accessed through an Internet modem, and converted into readable records: bills and reports. The process starts with a site review. “About 80% of our business is retrofitting into existing buildings,” Bill explains. ”A property owner can consider submetering all of the utilities, electric, gas and water,  in the same plan, using the same transmitters.” The price to install submeters on your property will depend upon a variety of circumstances: The number of floors. The terrain around the building. The composition of the building. The variances in floor plans in the units. The age of the plumbing. The size and accessibility of the hot water heater closet, and whether there is a direct cold water line hook up.  These factors determine which type of transmitters are needed, because some of these conditions will require stronger transmitters, and that will correlate to the total cost. “The work may have to be permitted,” Bill continues. “This is particularly true in retrofits. Typically, the plumbing and electrical work needs to be done by licensed contractors. The process is much easier if you are installing in new construction.”  Once the meters are in place, a collector is attached, which looks “just like a thick laptop computer.”  That will store the data received from the meter transmitter.  Midway offers the additional service of reading the meters, billing the tenants and collecting the money. Financing options for submetering installation avoid an up-front cash layout. Click here for more on the benefits of submetering. Check out our Green Pages for information on money saving tips that help the environment.  Once there, click on the Green Forum. American Apartment Owners Association offers discounts on products and services related to your commercial housing investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing.  Find out more at www.joinaaoa.org. To subscribe to our blog, click here. Tags: submetering+utilities, how+to+submeter+utilities, benefits+of+submetering, submetering+saves+energy, green+landlords, apartment+owners+associations […]

4. AAOA - American Apartment Owners Association » Tenant is Always Liable for Utilities, Right? Think Again said at August 25th, 2008 at 10:08 am

   […] Find out how it can force your tenants to conserve gas, electricity and water.  Click here for more.   Did you know there is an inexpensive device that can help save electricity and […]

5. Deb Hanamura said at August 27th, 2008 at 7:45 am

   I’m so pleased to see this information on your site about submetering. ista has been touting the benefits of utility submetering for over 100 years since our company first started in Denmark. Utility costs are volatile and have massive impact on a property’s bottom line. With submetering apartment owners and operators can protect themselves from rising utility costs, increase conservation of natural resources, and increase their NOI. It’s a great program and an important part of any property’s budgeting plan. Thanks for posting all this great info!

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