Submetering utilities is a wise financial choice in the dynamic landscape of property management. From multifamily and student housing to manufactured housing and commercial facilities, finding innovative solutions to optimize costs and promote sustainability is crucial. One such practice gaining extreme momentum and popularity is utility submetering. This method involves monitoring, measuring and billing individual tenants for their specific consumption of utilities like water, electricity, or gas, which result in monetary gains for both tenants and property owners.
Submetering allows for a fair and accurate distribution of utility costs among tenants. Unlike traditional flat-rate billing, where everyone pays the same amount regardless of usage, submetering ensures that each tenant pays for the exact amount of utilities they consume. This approach promotes fairness and eliminates the inequities associated with shared billing.
While submetering allows for charging back unique usage, another key advantage is its positive impact on energy conservation. When tenants are directly responsible for their utility costs, they are more likely to adopt energy-efficient practices. Submetering serves as an incentive for individuals to be mindful of their consumption, reducing energy usage and lowering utility bills.
Empowering Tenants to be Environmentally Responsible
Empowering tenants to make choices that align with their preferences and lifestyles, such as adjusting thermostat settings or investing in energy-efficient appliances, fosters a sense of control and responsibility. Implementing the submetering process provides tenants with individual control over their utility costs. Submetering also aligns with the broader push towards sustainability and environmental responsibility. By holding individuals accountable for utility usage, submetering encourages tenants to adopt eco-friendly practices and contribute to environmental conservation efforts, while benefitting financially.
For property owners specifically, this means that submetering provides an opportunity to recover the costs of utilities. Property owners can generate additional revenue, and increase their NOI (in as little as thirty (30) days) by passing these costs directly to tenants based on their individual usage. This financial benefit helps offset the expenses associated with providing utilities to the property, contributing to a more sustainable economic model.
Within specific regions, submetering may be a recommended practice or a strict regulatory requirement. Property owners can avoid compliance issues by implementing submetering systems that align with local regulations. This ensures legal compliance and positions the property as environmentally responsible.
Submetering utilities is a positive infrastructural investment solution and wise financial choice for property owners and tenants alike. From fair cost allocation to energy conservation and compliance with regulations, the financial sense of submetering goes beyond immediate gains. Implementing submetering systems promotes sustainable practices and contributes to a more transparent and harmonious relationship between property owners and tenants.
Whether you have a small, growing portfolio or a large, nationwide book of assets, our talented team of specialists at Multifamily Utility Company is prepared and equipped to assist you with your future submetering transition plan and unburden you with the chaos in-house utility billing brings. Schedule a time to talk to your market specialist today by clicking here.
About Multifamily Utility Company
Multifamily Utility Company founded in 2007, is a leader in utility expense management and resident billing services. We are dedicated to providing a sustainable and cost-effective environment through awareness and conservation to help you increase your NOI and achieve your green energy initiatives. Our focus is providing customized utility solutions for our clients and their portfolio of communities in the US and Canada. Our innovative solutions include property management software integration, resident payment processing, in-house collections department, utility expense management, vacant cost recovery, regulatory support and submeter consulting. Multifamily Utility Company has been on the Inc. 5000 list of fastest growing companies six times, including 2019.