Most properties, especially older ones, use a ratio utility billing system (RUBS) to split utility costs. Instead of billing tenants based on actual usage, the RUBS divides total utility costs for a building using a formula based on factors like the size of each unit, the number of occupants, or even shared amenities.
This formula is mostly outdated and doesn't help much with large-scale properties. That's where utility submetering systems come in.
Think of them as a way to track who uses what when it comes to utilities like water, electricity, gas, or even heat. Instead of lumping all tenants’ utility usage into one big bill, each unit gets its own meter. This means you can measure exactly how much each tenant uses.
In this article, we'll explain how these systems work, their types, and what they help with.
How Do Utility Submetering Systems Work?
As a first step, each unit receives its own meter or micrometers (when multiple meters are connected to each fixture in the unit). These meters connect to a central system or network that collects usage data.
Depending on the setup, data gets recorded manually or through automated systems that send the information to a database. Once the usage data is in, it’s used to calculate individual utility bills.
Types of Submetering Configurations
Let’s go over the different ways you can set up submetering systems. It’s not one-size-fits-all, and that’s the beauty of it. Here’s a quick breakdown.
Single-point submeters: Each unit gets its own metering system that tracks only what they’re using. It’s perfect for straightforward setups where you just want to bill tenants individually based on their specific usage or better understand usage patterns to reduce your water consumption
Multi-point submeters: It can track usage for multiple circuits or devices from a single electrical panel, perfect for buildings where multiple tenants share one panel.
Branch circuit submeters: If you’re managing a commercial property or an industrial facility, branch circuit submeters are your best bet. They track energy use across multiple circuits within a panel system.
The Role of Technology in Submetering
Modern building systems often use smart meters. These meters send consumption data automatically, making it easier for property managers to handle billing without much manual work.
Some systems even let tenants view their usage in real-time through apps, which can be a real eye-opener on your building's water consumption, not just for you but for your tenants.
Types of Utilities Measured by Submetering Systems
Utility metering systems can measure resource consumption fairly accurately. Here are the most common types:
Water Submetering
Water submetering is one of the most common and practical examples of utility submetering systems. Each unit gets its water meter, so tenants are charged based on how much they actually use.
This is especially useful in multi-tenant properties where water bills are often split evenly, no matter how much each person uses. It also helps identify building inefficiencies, such as water leaks in apartments, early on.
One of the best water submetering systems you can have is DrizzleX's smart micrometers. You can install them on fixtures like sinks, showers, and toilets, even in common areas like laundry rooms and sprinklers.
They measure water flow accurately and send the data to a dashboard you can check anytime. It even alerts you if there’s a leak or if someone’s using way more water than usual, helping you save money.
This means you can bill tenants based on exactly what they use instead of splitting the cost evenly. It’s fairer for everyone.
Tenants using less water save money, and those using more pay their share. It’s also great because you’ll know about leaks immediately and can fix them before they turn into bigger problems.
Water Submetering Case Study
We’ve made a case study with one of our clients to show how an efficient water submetering system can lower utility costs.
A property in Gardner, MA, implemented DrizzleX’s water submetering system across its 224 units housing 670 tenants.
Over the course of nine months, the submetering system helped the property save 49% on water costs, for a total savings of $91,434!
See the image below for a thorough breakdown of how much water savings DrizzleX’s submetering solutions have done for this property.
Interested? Get a free quote from DrizzleX and see how their submetering systems can benefit your property today.
Electricity Submetering
Electricity submetering works the same way: each tenant is billed for the exact amount of electricity they use. This is a big deal in properties where energy usage can vary widely, such as units with electric space heating or many appliances.
Gas Submetering
Submetering natural gas usage is a no-brainer if your property has gas-powered stoves, heaters, or water systems. It works like water or electricity submetering—you install a meter for each unit, and it tracks exactly how much gas they use.
This setup is especially handy when tenants have different lifestyles. It’s fair and simple and saves you from explaining why someone’s gas bill feels unfair.
Heat and Cooling Submetering
These systems measure energy usage for HVAC systems, whether it’s heating in the winter or air conditioning in the summer. This is especially important in larger buildings, where temperature control is one of the most significant energy costs.
How DrizzleX Can Help You With Utility Submetering Systems
DrizzleX allows you to detect hidden leaks, such as running toilets and leaky faucets, to stop water waste. It also alerts you to excessive water overuse by tenants. With DrizzleX, your building can reduce your 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, boosting your net operating income through lower utility expenses. You can get a free quote and start submetering your apartment today!
Usage Reports
One of DrizzleX's solutions is the “Water Consumption Insights Report” report. Your tenants might not be aware of their excessive water usage. So, an accurate report can be very helpful in communicating with your tenants about their water consumption habits and backing it 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 the water flow in your building.
The system will notify you where and how much water is 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 Utility Submetering Systems
What are the disadvantages of submetering?
Submetering can be expensive to install, especially in older buildings. It also needs regular maintenance to keep things running smoothly.
What is the difference between a utility meter and a submeter?
A utility meter shows how much the whole building uses. A submeter shows how much each unit or tenant uses.
What is the point of submetering?
Submetering ensures that tenants are billed based on their actual utility usage, promoting fairness and accountability. It helps property managers identify inefficiencies, detect issues like leaks, and encourage conservation while improving cost recovery.
What is the difference between a main meter and a submeter?
A main meter tracks the total utility usage for an entire property, while a submeter breaks it down to measure the usage for individual units or tenants. This allows for more accurate billing and better resource management.
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