5 Reasons to Switch to Multifamily Water Submetering
- DrizzleX
- Oct 21
- 7 min read
Water costs are difficult to control in multifamily properties. With a single master meter, you divide one bill across all units, which can spark tenant disputes and leave you vulnerable to unpredictable utility charges.
Multifamily water submetering solves this issue. Each unit has its own meter, and tenants pay based on usage.
Submetering improves net operating income (NOI), increases property value, and protects you from sudden utility spikes. It also separates rent from variable water rates, giving you more accurate cost recovery.
This guide explains what submetering is, why property owners adopt it, the challenges to prepare for, and the benefits it delivers over time.
What Is Multifamily Water Submetering?
Multifamily water submetering means installing water submeters in each unit of a property. These individual meters record a unit’s actual water usage, which allows tenants to pay only for what they use.
Older utility billing methods like RUBS estimate charges based on square footage or occupancy. While simple, they don’t account for excessive usage in a single unit.
In contrast, water submetering systems track individual usage and provide accurate billing that reflects each household’s habits.
Submeters give property owners reliable data to work with. You can see how water is used across units, catch leaks before they get out of hand, and fix problems before they inflate your operating expenses.
Why Should You Switch to Multifamily Water Submetering?
If you’ve ever questioned whether submetering is worth it, consider these benefits. Each one addresses a common pain point in multifamily utility billing.
1. Fair and Accurate Billing
Flat-rate billing spreads charges unevenly. One resident’s high water consumption can inflate water bills for the entire property. Submetering changes that by tying each bill to actual consumption.
With submeters in place, you gain:
Fair billing: Each resident pays only for their unit’s water usage.
Detailed records: Meters produce usage data you can reference when questions come up.
Regulatory compliance: Billing policies must follow local regulations, including how you handle shared water use, such as irrigation systems.
Accurate readings: Accurate readings from a smart water monitoring system give owners dependable numbers for billing.
Early detection: Tracking consumption patterns helps detect water leaks before they raise operational costs or lead to costly repairs.
Fair tenant billing also stabilizes property finances. When tenants cover their own share of utility costs, owners no longer absorb fluctuations in overall utility consumption.
2. Encourages Water Conservation
When residents pay for their individual usage, they are more likely to turn off faucets, shorten showers, and report leaks.
The National Apartment Association (NAA) reported that properties with submetering systems can cut water use by 15% to 30%.
The report states that since submetering technology allows tenants to see their actual water use instead of estimates, it fosters a sense of accountability and incentivizes them to adopt water-saving habits.
This might also explain why properties that share consumption data with tenants regularly see even greater reductions, since residents can track their habits and adjust to lower costs.
Lower usage helps owners by cutting operational costs and easing wear on plumbing systems. Some owners also install water-saving devices, which cut waste at the fixture level and complement submetering strategies.
3. Higher NOI and Increased Property Value
Submetering changes how the property is evaluated by investors and lenders. A building with transparent billing and verified consumption data signals lower financial risk, which supports higher valuations.
Some of the main benefits are:
Verified operating history: Submeters generate records of actual consumption for each unit. Buyers can review this data during due diligence, which gives your property an edge over buildings without that level of detail.
Predictable income: With utility costs passed to tenants, NOI stabilizes. This consistency makes it easier to project returns and secure financing.
Resale leverage: Properties marketed with a proven record of reduced operational costs often sell faster and at a premium, especially in markets where investors compare buildings closely.
Submetering provides a track record of precise usage data and stable collections, giving buyers confidence they’re investing in predictable returns.
4. Detect Problems Faster With Submetering
The U.S. Environmental Protection Agency reports that the average family of four uses about 400 gallons of water each day. Nearly 70% of that use happens indoors, with toilets alone accounting for more than a quarter.
In a multifamily property, a single faulty fixture can inflate water use across the building before anyone notices.
Water submetering systems make those problems visible at the unit level. When one meter shows unusual use, it points to where maintenance is needed. Acting on that data prevents wasted water, helps reduce costs, and keeps plumbing systems in better condition.
Submetering also highlights irregular consumption habits or appliances that draw far more water than expected.
Catching these patterns early protects the property from higher bills and prevents residents from carrying the burden of another unit’s waste.
5. Better Tenant Satisfaction and Retention
Submetering improves the resident experience by tying each tenant’s bill to their own water use. When charges reflect individual units, tenants see accountability built into the system, which builds trust in the property.
This fairness supports retention. Longer stays mean fewer vacancies and lower turnover expenses, which helps stabilize operations.
Submetering can also make a property more attractive to prospective tenants, especially as more renters look for communities that promote more sustainable practices.
Residents also benefit from feedback. When they receive detailed insights into monthly use, they can adjust consumption habits and keep bills manageable. As a result, they're more likely to renew their leases and recommend the property to others.
How DrizzleX Improves Water Use in Multifamily Properties
Unit-level submeters assign costs fairly but don’t reveal where water is consumed. Most multifamily properties in the U.S. still rely on a master meter or rough estimates.
DrizzleX addresses this limitation with fixture-level micrometers. These devices track sinks, toilets, and showers separately, giving owners usage data that supports accurate billing and better water management.
Fixture-Level Micrometering
A submeter measures an entire apartment’s water use. Meanwhile, a micrometer measures the flow rate at each fixture. The combined readings from all fixtures in a unit form a submetering system.
DrizzleX compiles these measurements into the Water Consumption Insights Report. This report highlights where the highest usage occurs and makes it easier to spot problems, such as running toilets that inflate utility costs.
Since DrizzleX monitors fixtures, it pinpoints waste at the source rather than relying on averages or assumptions.
Real-Time Leak Detection and Alerts
Leaks often go unnoticed until a water bill spikes. DrizzleX micrometers detect unusual fixture-level flow and send alerts when usage patterns indicate a problem.
Notifications specify the unit, the fixture involved, the gallons wasted, the estimated cost, and a suggested fix. Owners can act before the issue escalates.
Peoria Case Study: Leak Detection in Action
A 57-unit property in Peoria installed DrizzleX micrometers on toilets and showers.
Before installation, the property consumed 20,487 gallons per day, or 180 gallons per tenant. After installation, daily use fell to 6,852 gallons, or 60 gallons per tenant.
The results were clear. Average monthly water costs per unit dropped from $81.30 to $27.19. Annual cost savings reached $37,525.
These reductions came from faster leak detection and tenants reducing overuse once they saw their consumption trends in the reports.
The project also showed that monitoring only high-use fixtures can achieve measurable results. With toilets and showers alone, the property cut water use by 67%, proving the value of fixture-level monitoring in commercial properties.
Tenant Billing and Behavior Change
DrizzleX converts fixture-level data into accurate bills. When tenants pay based on their own usage, they adjust their consumption habits.
In Peoria, daily use dropped by two-thirds after residents saw how their choices affected costs. This shift lowered expenses for owners and advanced broader conservation efforts.
Fast ROI and Easy Setup
Traditional submeter installation can involve plumbing modifications that take time. DrizzleX isn’t like that. Each micrometer installs in about 15 minutes per unit without cutting pipes or opening walls, and batteries last up to ten years.
Most properties recover their investment in less than nine months. Transparent billing and reduced utility costs make DrizzleX an accessible solution for older and newer properties.
AI Predictions and Forecasting
DrizzleX also uses AI to forecast usage for the rest of the current month and the next two months. Once a unit has at least a year of data, you can access predictions in the dashboard’s Chart tab.
This feature helps anticipate higher utility bills, flag units at risk of overuse, and manage water expenses before problems escalate.
Steps to Implement Multifamily Water Submetering Successfully
Adopting submetering requires planning and clear execution. These steps help owners and property managers handle the proper installation process:
Assess plumbing feasibility: Inspect the current setup to see whether submeters can be installed. Older riser systems may need alternatives like fixture-level micrometers.
Review compliance requirements: Local and state laws govern utility billing. Following these rules avoids legal issues and future disputes.
Select appropriate technology: Choose meters that fit your property’s infrastructure. DrizzleX micrometers capture fixture-level use, giving you precise insights into leaks and tenant consumption.
Communicate with tenants: Explain how submetering works and why it benefits residents. This step reduces resistance and sets clear expectations.
Test and calibrate equipment: Accurate setup during the installation process prevents errors in billing and keeps usage records reliable. If you’re planning a project, see our practical guide on how to install water submeters.
Share usage data: Provide tenants with clear reports. Tracking water usage patterns helps them adjust habits and reduces complaints about fairness.
When the entire process is handled carefully, submetering resolves billing disputes and helps owners optimize water use in commercial buildings.
Cut Water Bills by 20-40% or More with DrizzleX
Multifamily water submetering gives owners accurate billing, fair cost recovery, and data to manage resources wisely. It reduces waste, lowers expenses, and adds value that investors recognize.
DrizzleX builds on these advantages with fixture-level micrometers. Instead of relying on manual systems, you gain precise usage data, early leak detection, and transparent billing.
Properties that install DrizzleX often cut water costs by 20-40% and recover their investment in about nine months.
FAQs About Multifamily Water Submetering
How does water submetering work in multifamily properties?
Each unit has its own meter that records actual usage. Instead of dividing one master bill across all tenants, residents pay only for what they use. This setup provides accurate billing, supports fair cost recovery, and gives owners visibility by tracking water usage.
Does submetering reduce disputes with tenants?
Yes. When bills reflect each unit’s actual consumption, tenants see exactly what they are responsible for.
Transparent usage data lowers the chance of billing disputes and contributes to better operational efficiency for owners.
What is the return on investment for submetering?
Most properties recover costs within 6 to 18 months. With DrizzleX, the implementation process is simplified because fixture-level micrometers install without plumbing changes.
Faster installation and early leak detection cut expenses sooner while giving owners reliable data for ongoing management.
