Tenant Submetering: What It Is and Its Benefits

Living costs are increasing every day, from electricity bills to water usage. Many landlords and property owners are seeking ways to lower expenses while improving utility management.

One example that is becoming popular nowadays is tenant or individual unit submetering. This can help property owners reduce excessive water usage problems and energy costs.

In this article, we’ll explain what tenant submetering is. We will also discuss how it works and the benefits it offers for property owners and tenants alike.

What Is Tenant Submetering?

Tenant submetering involves installing separate utility meters for each apartment or tenant in a building. These meters track the actual water, electricity, or gas usage by individual tenants.

This system differs from traditional utility setups, where the entire building is billed as one unit.

Submetering individual apartment units disaggregates consumption. It allows each tenant to pay only for their actual water usage.

It maintains fairness and accountability while giving landlords more control over utility billing and monitoring.

Benefits of Using Submetering for Tenants

Why should your tenants stop wasting water? Here's a breakdown.

Fairness and Transparency in Utility Bills

Submetering helps bill tenants solely for their actual utility consumption. Installing meters provides a clear breakdown of individual consumption.

It eliminates the common discrepancies seen in collective or ratio billing systems such as RUBS, where tenants are charged a flat rate in utility costs regardless of individual usage.

Encouragement of Less Energy Consumption

Tenants become more mindful when they know their utility bills show their exact usage. This accountability motivates tenants to:

• Turn off unused lights

• Conserve water

• Avoid wasteful habits

As a result, overall energy usage and water consumption decrease. This becomes a benefit for both tenants and the property owner.

Reduction in Operational Costs

Lower water usage can significantly reduce operational costs for a building owner. It encourages tenants to use water more efficiently and decreases the overall consumption within the property.

It can reduce wear and tear on a building’s plumbing. Submetering also helps identify specific units with high usage. This allows targeted fixes that save money over time.

Valuable Data for Efficient Property Management

Submetering systems provide property managers with detailed and accurate data analytics. It offers precise information about how much water, electricity, or gas each unit uses.

Landlords can collect this data from the meters installed and use it to identify:

• Inefficiencies

• Unusual spikes

• Potential leaks

It also detects the areas where water conservation measures can be implemented.

How Does Submetering Work?

Submetering creates a system where each tenant is charged based on their actual utility use. This involves installing separate meters, collecting detailed data, and using advanced tools to monitor usage across the property.

Separate Meters for Each Unit

Submetering uses individual meters to track utility use for each tenant in the building. These meters record the exact consumption of utilities, such as water, electricity, and gas.

Centralized Data Collection

The system connects all submeters to a central platform. Property owners or service providers access this platform to review usage data and create accurate tenant bills.

Fair Billing Practices

Tenants receive utility bills based on their actual consumption. This replaces shared billing methods which makes the billing process more accurate and equitable.

Real-Time Problem Detection

Submetering systems often include tools for real-time monitoring. These tools help property owners identify leaks, unusual usage, or other issues. It helps them conduct property maintenance and address problems without delay.

Use Cases of Submetering

Submetering offers practical solutions for various property types and scenarios. It addresses different needs by providing accurate usage data and fair billing.

Multi-Unit Residential Buildings

Submetering works well in apartment buildings, condominiums, and other multi-unit residential properties. In these settings, the measured consumption can differ markedly from one unit to another, depending on factors like:

• Square footage

• Number of occupants

• Lifestyle habits

However, many multifamily buildings cannot install traditional submeters because the building plumbing does not have a water main going to each apartment. Instead, the plumbing runs every which way, and there simply is no way to install standard submeters.

But thanks to IoT technology, fixture-based micrometers, such as those available from DrizzleX, can be a great solution in buildings where standard submeters won’t work.

The full visibility of every fixture’s water usage and the real-time alerts mean you can stop waste immediately. The average building that uses DrizzleX saves 25-45% on its water bill. DrizzleX data can be used to bill your tenants just like a traditional submeter.

Common Areas

Implementing water submetering in common areas of residential buildings improves the efficiency of water usage and cost allocation. This includes areas such as:

• Laundry rooms

• Hose bibs

• Sprinkler systems

This level of detailed tracking helps landlords identify areas of excessive water usage. It guides how you can implement water-saving strategies.

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

When tenants pay based on their own usage, they often make more responsible choices. This leads to reduced overall consumption across the property.

The initial setup cost may be substantial, but the reduction in overall utility usage leads to lower meter readings over time. For landlords and property owners, this is a direct decrease in operation and property management expenses.

Increases Property Value

Prospective tenants and buyers often consider submetering a modern, fair, and efficient utility management system for an existing building. It shows tenants they will not pay for their neighbors’ excessive utility use.

It gives the property a higher value in the rental market. Properties with submetering also often experience fewer vacancies and higher tenant satisfaction.

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 reduces the 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 use it to adjust:

• Billing cycles

• Utility rates

• Other parameters

This helps suit the specific needs of their property and tenants.

How DrizzleX Can Help You

DrizzleX finds hidden leaks, such as running toilets and leaky faucets. This helps property owners prevent millions of gallons of water waste every year. The system monitors water flow in real time and detects issues that often remain unnoticed.

Buildings using DrizzleX typically lower their water bills by 20 to 40%. Most properties recover the cost of the system within nine months, making it an effective and cost-saving choice.

Usage Reports

One of DrizzleX's features is the “Water Consumption Insights Report” report, which highlights excessive water consumption. Many tenants are unaware of their usage patterns, and this leads to unnecessary waste. These reports offer accurate data to address overuse and encourage better habits.

Leak Detection

DrizzleX detects leaks that are not visible during inspections. Silent leaks often go unnoticed until they cause higher utility bills. The system monitors water flow and provides real-time updates. Property owners can pinpoint the source and size of the leak to help address problems before they escalate.

E-Mail Notifications

When DrizzleX detects a leak, it sends an email with detailed information, including the location of the issue, gallons wasted, estimated costs, and possible causes. The notifications also include recommendations for resolving the problem to help property owners act quickly.

Billing

DrizzleX allows property owners to bill tenants based on actual water usage. This promotes accountability, as tenants use water more responsibly when billed fairly. Accurate tracking simplifies billing and reduces disputes, which benefits both tenants and property managers.

FAQs About Tenant Submetering

Will submetering disrupt my billing period or current utility setup?

Submetering won't disrupt your current utility setup at all. The submeters are installed alongside your existing utility meters to provide more detailed measurements.

How long does it take to see a return on investment?

The payback period depends on factors like utility rates in your area and how much more granular data helps you optimize usage. But for most, the upfront cost pays for itself quickly in utility bill savings.

Can submetering be used for both old and new properties?

Submeters can be installed on any property, old or new. The process involves basic wiring and doesn't require major construction.

Can tenants remove the submeter?

Only authorized technicians should install, maintain, or remove the devices. Submeters are usually placed in secure areas.