Many of the older and some of the newer apartments, manufactured home communities, condos, and even commercial buildings in any part of the country still operate on shared utility billing.
In other words, there is one meter for the property, and the cost of the monthly bills is factored into a complex formula that typically includes the number of tenants and square footage to arrive at the monthly amount owed by each unit. The other option is to simply charge a flat rate per month, which may leave the landlord paying the balance.
One way to address this issue is to move to utility submetering. This involves placing a meter on every unit, allowing for precise and accurate individual billing. While there is an initial cost to this upgrade, there are several reasons why it makes good financial sense.
Attracts Tenants
Many savvy tenants for both residential and commercial space are aware of the benefits of individual billing rather than shared billing. Advertising the space as having individual meters for utilities will attract tenants.
Appeals to Environmentally Conscious Consumers
As more people focus on environmentally friendly and sustainable types of use of materials, water and energy conservation becomes a more important factor. With the use of utility submetering, it is possible to provide incentives and create “green” living and commercial spaces.
Allow For Monitoring of Usage Patterns in Real Time
For landlords and property managers, having the ability to monitor usage in buildings or across holdings is a benefit. It allows for the understanding of usage patterns and any abnormalities in use that could indicate a yet undetected leak or other problem.
Provides Third-Party Billing Options
The best submetering services also provide automated billing and payment. This takes the pressure off of the property management group while also providing a safe, secure and efficient online payment process.