Hidden Benefits of Submetering

As you may know, submetering is the process of installing individual meters and measuring the tenant’s utilities individually and then allocating the bill according to those measurements. These utilities may include electrical, gas, or water. The submeter itself records the exact amount of usage for each unit in the building, or apartment complex.

Submetering actually holds each and every household/ tenant accountable for their energy use. Submetering indirectly ends up saving energy and costs. How? Well, if each household is responsible for their own utility usage, then each household begins to watch their usage. This means lights will be turned off while in a room, light bulbs will be changed to energy efficient bulbs and showers will be cut into ¼ of the average time.

Although some believe that they may be being charged extra by using submetering, the truth of the matter is that you actually end up paying more when you pay the traditional “split cost”. The property management has to increase the rent more often to cover their overall rising utility cost.

So what do you think about being charged for your individual usage? As a tenant in an apartment complex or high rise, there are already so many costs you can’t completely control. The monthly rental or mortgage fee is set, so there is really nothing you can do about that. Everything else needed to run a household is usually also a flat, monthly fee. It’s actually nice to know that there’s one fee that you can somewhat control.

It is no wonder that more and more property owners and managers are switching over to submetering.

Submetering may seem like a hassle at first, but the long term benefits far surpass any of the beginning troubles. Your tenants will thank you too, and you will attract more tenants with this fair system. Although it may seem like a complicated process, Banyan will walk you step-by-step and assist you with any concerns or questions you may have.

Do you have experience with submetering? What are your thoughts? Feel free to let us know your experiences. We’d love to hear from you!