Submetering
Submetering is the most accurate method of recovering variable utility costs in the multifamily housing market. By measuring each individual resident's utility consumption, and then billing them directly for their use, multifamily properties benefit from reduced variable utility costs, improved net operating income, and increased property value.
Unlike ratio utility billing systems (RUBS), a submetering system tracks each resident’s monthly utility use, and a billing company provides a bill to each resident based on their personal usage. Submetering not only reduces a property’s operating expenses, but also encourages utility conservation among residents.
Submetering not only saves money, but it also improves the marketability of a property. Since residents are responsible for their own utilities, properties can offer more competitive rents, attracting more prospective residents. Since wireless submetering systems are compatible with water, electric, and gas meters, properties can recover virtually all utility expenses associated with individual apartment units. A property’s operating budget is no longer affected by utility rate increases or spikes in resident usage.
More information about submetering:
More information about the Inovonics Tapwatch submetering system: