Multifamily Water Submetering Guide

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In multifamily properties, it’s easy to understand how much water the building or property as a whole consumes thanks to the utility-owned water meter, but this provides no granular data on individual unit or apartment-level consumption. Without visibility, multifamily property owners often end up paying the whole water bill, have little understanding of unit-level consumption, struggle to identify leaks inside individual units, and cannot fairly allocate costs to the tenants who generate them.

This matters when set against a context of rising water costs as a result of increased demand, climate pressures, aging infrastructure, and inflation, as identified by the EPA’s Water Affordability Needs Assessment. As a result, many are turning to multifamily submetering systems, in which individual unit water submeters are installed that record individual unit-level water consumption and can feed this data into a centralized management and billing platform.

Water submetering systems offer numerous benefits to property owners and tenants, including better visibility, greater tenant accountability, and substantial reductions in overall water consumption — the National Multiple Family Submetering and Allocation Billing Program Study showed that direct metering can reduce annual water consumption by 15%, while other public-sector and industry analyses suggest up to 30% reductions. Leak detection, better utility cost control, and higher NOI offer additional benefits to submetered properties.

Rollout costs and provider selection can be large concerns for many property owners, but multiple provider and deployment models exist across the industry, enabling flexible, tailored approaches. In this article, we’ll discuss how submetering works, different types of providers, how to implement water submetering, benefits and challenges, costs, differences between submetering and traditional allocation methods, and whether submetering is worth it — and when it isn’t.

What is Multifamily Water Submetering?

Multifamily submetering is a system in which each unit in a multifamily property is equipped with its own water meter that tracks water flow independently of the building’s master meter. This means tenants are billed for their actual water consumption rather than estimates or formula-based allocations. This is fundamentally different from traditional master metering, where a single meter measures consumption for the entire building, and costs are split or allocated by a formula.

Multifamily water submetering enables multifamily home water management services connected with a utility to track consumption at a much more granular level, providing fair billing and transparent cost allocation for tenants while also supporting compliance with local or regional regulations.

How Does Multifamily Water Submetering Work?

Modern multifamily water submetering is a simple and easy-to-understand process. It works much like traditional master metering, but at a much more granular scale. The main difference is that each unit is metered separately, allowing it to be billed individually. There are three important differences in submetering versus traditional metering: meters, data collection, and billing processes.

Individual Meters per Unit

In a typical multifamily metering setup, each unit is supplied with its own water sub-meter. This means individual water meters for apartments, units, or condos are installed at each unit’s water entry point. Modern systems use a range of meters, from more traditional mechanical water meters to innovative ultrasonic smart meters, to measure water flow. Many smart water meters offer advanced features such as automatic leak detection and mobile app for monitoring and alerts.

Data Collection

Traditional submetering systems require manual meter readings. This means physical meter inspections, which can be labor-intensive and error-prone. However, many modern water submetering solutions are IoT-enabled smart systems with significant automation. These enable fully automated, remote meter readings, reducing the need for physical inspections and improving data collection efficiency and reliability.

Billing Processes & Analytics

In submetering solutions, data is usually aggregated into utility management platforms designed to collect it and support data for billing. These usually include tenant usage dashboards, detailed data for landlords and managers, and can be integrated with billing platforms other property management software.

Modern submetering systems provide substantial additional capabilities compared with older systems, including real-time monitoring, leak detection and automated alerts, device and network monitoring, full property visibility on usage analytics.

How Multifamily Water Submetering and Billing Work Together?

One of the most important benefits of water submetering in multifamily contexts is its use in billing. Water submetering systems and billing processes must work together to realize these benefits; meter installation only provides accurate measurements. For a functional multifamily billing program, you also need reliable data collection, validation, resident communications, and effective dispute handling

In this section, we’ll consider the steps in the submetering-to-billing process, from water consumption and data collection right through to resident billing.

The typical submetering and billing chain looks like this:

Unit consumes water
Water submetering begins here, with the ordinary water consumption of each unit.

Submeter tracks consumption
Each unit has an associated submeter, which records unit-level water consumption data specific to that meter and unit in the system.

Submeter readings and data transmission
Depending on the specific type of submetering solution implemented, the system can automatically collect and transmit water consumption data to the data management platform. The reading and transmission frequency depends on specific implementations, but generally, the system will timestamp data, flag missing reads and communication failures, and ensure that the collected data is sent to the data management platform or that errors and alerts are correctly generated.

Data platform receives data
The data platform receives submeter data and associates the device that took the reading, the unit to which the device is assigned, the reading itself, and the timestamp, enabling the creation of the historical consumption record.

Data is validated by the platform
Generated data must be verified as accurate to be useful, especially for billing purposes; this means the data platform can’t simply accept every incoming reading without first ensuring it’s accurate. Validation, therefore, needs to identify missing reads, abnormal usage spikes, impossible readings, communication failures, meter resets, device replacements, estimated readings, and duplicate records. Identified anomalies should be investigated rather than assumed to be a billing error or leak.

Data is passed to the billing system
The billing system generates actual bills based on measured consumption and validated data, but measured consumption isn’t automatically the same as the final billed amount. The billing system must process this data first.

Residents’ bills are generated
Final billed amounts can depend on consumption, applicable utility rates, any wastewater charged, other fixed charges, any legally permitted administrative charges, billing-period rules, and any other jurisdiction-specific requirements. Billing systems will apply these factors to the data to generate a bill.

Bills are paid/dispute processes begin
After a bill is generated, residents can either pay it or dispute it. Where disputes occur, it’s essential for property owners and managers to be able to point to relevant consumption data. With the submetering system and billing platform, it should be possible to display meter readings, billing calculations, water rates, and other charges. It’s essential that tenants understand the billing structure, rates, any additional charges, and dispute mechanisms.

Benefits of Multifamily Water Submetering

Water submetering offers significant benefits for both landlords and tenants, whether these are financial, operational, or satisfaction-related. Key advantages include utility cost recovery, improved billing fairness and transparency, leak detection, reduced water consumption, and increased property value and marketability.

Utility Cost Recovery

Under traditional master metering systems, many landlords charge tenants a fixed price or rate for water that often bears no relationship to actual water consumption. This can leave property owners facing substantially higher costs. Water submetering allows property owners to reduce their utility expenses by passing the costs directly to the tenants who generate them.

Reduced Water Consumption and Waste

Water submetering can significantly reduce total water waste and consumption, primarily by incentivizing behavioral changes. Tenants’ bills are directly tied to their own water consumption, so they are incentivized to conserve water. The National Multiple Family Submetering and Allocation Billing Program Study shows that water submetering can reduce total water consumption by 15%. In one California community, Mainlink’s submetering solution unlocked $17,000 in monthly savings.

Improved Billing Fairness, Accuracy, and Transparency

Disputes over water bills are a common cause of landlord-tenant friction in multifamily properties. Modern submeters provide extremely accurate measurements, allowing landlords and tenants to be confident that consumption data is accurate. When tenants understand that they pay only for what they use, and their consumption data is transparent and easily accessible, fewer disputes arise, and those that do can be resolved much more easily.

Leak Detection and Property Damage Prevention

Smart water submetering systems can detect continuous flow anomalies such as toilet leaks much earlier than manual detection. Such early detection can reduce water damage costs by thousands per incident, allowing landlords to optimize maintenance budgets and direct resources where they are needed most.

Increased Property Value and Marketability

Properties with modern multifamily water management solutions and other energy-saving and sustainability measures are much more attractive to investors, as these systems deliver a significant improvement in NOI. Some tenants prioritize properties with existing water or energy-saving measures, while others will be more attracted to properties that allow them better control over their own utility expenses.

Data-Driven Insights

Detailed consumption data and statistics provided by modern water submetering systems allow landlords to better optimize their operational budgets.. Comprehensive analytics and data can help owners plan maintenance, budget for infrastructure upgrades, and target resources where they can be used most effectively. Most importantly they have access for full visibility of their properties.

Who Provides Water Submetering Solutions for Multifamily Properties?

Water submetering is a diverse industry with multiple types of providers, each tailored to different operational needs. As such, no provision model is perfect in every possible scenario. Providers fall into one of three broad categories:

Hardware vendors/manufacturers

Submetering service and billing providers

Submetering system providers

Each provision model typically appeals to different sections of the market. Hardware vendors provide only the meters and associated equipment, but don’t manage the complete operational workflow or handle data management and related processes; they work best for property owners who want to fully control all aspects of implementation and deployment, from procurement to installation and administration.

Submetering service providers typically sell ongoing operational support, bundling several services into a single package. They usually provide meter installation and readings, data collection, utility billing calculations, tenant billing statements, payment processing support, reporting, and customer service operations, depending on the specific package deal. They work best for owners desiring outsourced billing and administration.

Full water submetering system providers typically offer the technology infrastructure needed to build a complete submetering ecosystem, including smart water meters, communication networks, cloud-based software and data management platforms, dashboards, analytics tools, and API integrations. Full submetering systems are well-suited to long-term property owners, multifamily portfolios, large building portfolios, and operators seeking full ownership and control of technology and data.

The following table discusses the types of water metering solution providers, things to consider with each, and what each is best suited for, along with example providers:

Type of Company	Provision	Things to consider	Best For	Example Providers
Meter hardware manufacturers	Physical meters and associated technology	Hardware-only solutions don’t generally solve billing or deployment	Owners with technical resources who require total control and flexibility over all aspects of the submetering system, from hardware to software and implementation	Master meter Metron
Submetering & billing service providers	Reading, billing, collections, and resident support	Additional hardware and integration responsibilities may remain with the owner, and data ownership should always be discussed	Owners wanting outsourced billing and administrative simplicity	Conservice National Exemption Service
End-to-end submetering solution providers	Water meters,, communications, platform, and mobile apps	Technology type, connectivity, billing integration, support	Property owners want plug-and-play solution with long-term infrastructure and control	Mainlink

How to Choose a Multifamily Water Management Solution

Selecting the right management solution for your unique context is essential, as submetering systems are not interchangeable. The system chosen directly impacts ROI, tenant satisfaction, and operational efficiency. As such, there are several essential factors to consider before making any choice. By assessing your needs in each of these areas, you can better evaluate vendors, systems, and technologies.

Provision Model

The provision model is foundational to choosing a water management solution. Each model offers different operational benefits and challenges, so this choice underpins selection. When evaluating providers, you should consider exactly what it is you need from your solution, from control over procurement to data ownership and even ongoing support needs.

If you’re looking for full control over the entire procurement, installation, and deployment process, hardware-only provision models will give you this — but you will be responsible for all ongoing support, maintenance, replacements, and administration.

However, if you simply want to outsource management and billing practices to streamline your administration, submetering service and billing providers may be a better option. These providers can handle resident billing, dispute processes, and submetering management, freeing up existing administrative capacity, typically for a recurring fee.

End-to-end water submetering solution providers offer a more complete submetering infrastructure, from physical meters to data platforms and integrations, which is well-suited to owners looking for long-term infrastructure ownership and control with fully integrated systems.

Each provision model satisfies different business and operational requirements, so it’s important to evaluate your choice based on your specific needs. No model is perfect in every scenario.

Existing Infrastructure Compatibility
Unless you’re choosing a system for a new-build property, compatibility with existing infrastructure will always be a major concern. No matter your provision model, you need to ensure that any hardware chosen is compatible with your pipe diameter and material, unit configurations, and hot/cold water configuration.

Adequate meter access and meter placement are also essential considerations for any deployment. Retrofit requirements and complexities can differ substantially, so proper planning is important. Many of these issues can be handled by experienced providers and installation companies, but it’s important to check before you commit to a solution or specific provision model.

Connectivity and Networking

Connectivity and networking are core components of many submetering systems. If opting for a traditional, purely mechanical manual submetering system without smart capabilities, this isn’t a concern, but modern AMR and AMI deployments require adequate communications infrastructure for data transmission and associated capabilities. There are many approaches, from cellular connectivity, which utilizes existing cellular network infrastructure, to LoRaWAN, which is an open standard allowing greater control over the network.

Consider your specific needs carefully, and if working with an established system provider, discuss your requirements with them.

Data Management and Billing Integration
Evaluating your data management and billing integration needs can help you decide between solutions and providers. When opting for a submetering service model, for example, you should consider who owns the data and the metering infrastructure, and what happens if you wish to change providers. When comparing solutions, consider how frequently data is updated, whether you have direct access through data management platforms, and whether the system supports integrations with your existing management software — and how the system or service provider manages billing, move-in/move-out processes, and disputes.

Costs and Fees

Hardware costs and installation fees are only one part of the total ownership cost. When opting for a hardware-only provisioning model, costs typically do not include ongoing management or software subscriptions, so it’s important to consider these in the total cost of ownership. For service provider models, recurring costs such as software and connectivity fees, support costs, and similar service fees can stack considerably over time. When evaluating end-to-end submetering system providers, consider ongoing infrastructure and maintenance costs, as well as replacement and other support costs.

For all provision types, consider the expected ROI and changes to NOI. Expensive upfront costs can be substantially mitigated by improvements elsewhere.

Scalability
Another important area to consider is scalability. How easy your solution is to scale up is important. Hardware-only models may suit small properties very well, but become difficult to scale for large building portfolios. Try to assess your current and future needs when choosing a solution, as what works now may be unsuitable later.

Types of Multifamily Water Submetering Systems

The water submetering industry has seen rapid growth and diversification over recent years, offering landlords and property managers multiple options. There are three types of water submetering systems in use: manual systems, which are traditional meters; automated meter reading systems, which don’t have advanced features; and advanced metering infrastructure, otherwise known as “smart” submetering systems with advanced monitoring opportunities.

Manual Submetering

Manual submetering is the most basic and traditional type of submetering. It requires physical meter readings, but offers the lowest upfront costs. However, manual submeters are prone to clog and their accuracy degrades over time. These meters require constant maintenance or replacements. Meter readings are typically performed by a technician or property manager, which can also increase overall metering costs.

AMR (Automated Meter Reading)

AMR systems offer wireless data collection, but without advanced features such as leak detection. They’re moderately expensive compared with manual submetering systems, but are more efficient, and are a much more modern approach to metering than traditional systems. They offer reduced labor because of the remote readings, improved accuracy, and easier data collection when compared with traditional systems, making them an attractive option. It is important to understand that AMR system usually have a mechanical meter and transmitter installed next to it to collect data. This means – more hardware costs, more on installation and maintenance.

AMI / Smart Submetering Systems

Fully smart AMI systems offer almost-real-time monitoring and data collection alongside advanced capabilities such as leak, freeze, burst, backflow detection. These systems could have higher upfront costs, but also the best long-term ROI. Because they offer comprehensive features for utility management, AMI systems are increasingly popular with building owners and managers.

AMI systems offer:

Real-time data
Alerts
Enhanced analytics
Two-way communications
Integrations with other smart infrastructure
Simplified maintenance

Water Submetering for Multi-Unit Properties in California

California has many excellent examples of water submetering in multi-unit properties because rising water costs, drought and water supply pressures, water conservation policies, and state submetering and billing rules combine to create conditions where water submetering is a major benefit to utilities, property owners, and residents.

In a water management context, these three California-specific factors are particularly relevant to multifamily water submetering:

California’s large multifamily housing market
Recurring drought and water supply pressures
A statewide legal framework recognizing and regulating water submetering in multifamily housing

As a result, the California Civil Code requires accurate individual water metering in all new multifamily residential structures, along with specific submetering requirements. Submeters for billing must be inspected, tested, and verified for commercial use; comply with applicable installation and maintenance requirements; measure only the water supplied to the individual unit; and be accessible for reading without entering the unit. Landlords must disclose in writing that water will be billed separately before signing the lease, and they must provide information on estimated charges and the billing arrangement.

Multifamily buildings pose a particular challenge for owners because utility-supplied master meters can only measure total building water consumption rather than individual units, creating a visibility gap. This means that property owners must use billing allocation methods such as Ratio Utility Billing Systems (RUBS), where costs are allocated according to formulas rather than consumption.

In contrast, water submetering enables precise, consumption-based billing for tenants, passing responsibility for the costs generated directly to those consuming the water. This supports statewide water conservation goals and improves utility cost recovery for owners.

Across California, in cities and areas such as Oakland, San Francisco, San Jose, Sacramento, Riverside, and Palm Springs, multifamily property operators are increasingly turning to water submetering in response to rising water costs, drought pressures, evolving operational needs, and regulatory changes.

However, before any rollout, owners should carefully evaluate their property, specific needs, and any local compliance requirements.

Water Submetering for Multi-Unit Properties in Other US States

The basic technology and systems for water submetering are identical across states, but specific rules governing tenant billing, disclosures, fees, and notice requirements can vary across jurisdictions. Although California has a particularly robust ecosystem, this same approach does not apply elsewhere.

For example, the Texas Water Code allows apartment owners to bill tenants for submetered water and wastewater. Bills must identify the tenant, amount due, water and wastewater charges, payment due dates, actual consumption, and the applicable cost. Property owners are responsible for installing, maintaining, and testing all submeters. Tenants have the right to request submeter tests, and owners must provide evidence that the submeter was tested accurately.

In Arizona, the law permits landlords to bill for water either via submetering or RUBS. The Arizona Revised Statutes state that bills must show charges, opening and closing meter readings, reading dates, and any administrative fees. Existing tenants must receive at least 90 days’ notice before submetering or RUBS begins.

In New York, submetering requirements vary across local water authorities. In New York City, qualifying buildings can participate in the Multi-Family Conservation Program, which uses fixed per-unit charges and requires an AMR-compatible meter and high-efficiency fixtures.

These approaches illustrate the radically different systems in use across the United States, with highly localized rules and regulations governing water submetering.

How to Submeter Water in a Multifamily Building?

Implementing water submetering in multifamily buildings is a multi-step process that requires technical evaluation, technology selection, and operational planning. A well-planned implementation can ensure accurate billing, long-term reliability, and a strong ROI. If you have opted to work with a trusted and experienced provider, your provider should be able to offer tailored advice specific to your implementation.

These six steps are an illustrative example of how to submeter water in a multifamily building:

Step 1: Assess Property Infrastructure

The existing plumbing layout needs to be assessed to evaluate the feasibility of any retrofits. Some plumbing systems may be incompatible with some meter hardware due to complexity or accessibility issues. Understanding your system layout is crucial. This includes understanding how each unit is supplied with water. Assessments should cover the number of submeters required, likely meter locations, whether there are any shared lines, the layout of hot/cold lines, and evaluate accessibility and access for maintenance and replacements.

This step is crucial because every multifamily building is different, and no submetering deployment will be exactly the same as another. Understanding the existing infrastructure and evaluating your requirements can help identify problems and challenges before they arise.

Step 2: Selecting Meter Technology

Your choice of meter technology can have material impacts on how you implement submetering in multifamily contexts. At this point, it’s important to consider exactly what you need from your submetering system.

Manual submeters are often simple to install, as they do not require complex communications infrastructure, but lack the advanced functionality found in AMR or AMI (smart) systems. All meter technologies have advantages and disadvantages.

If you have opted for a submetering service or a full submetering system provision model, your provider will generally have preferred hardware and technologies, but you can always discuss your needs with them.

Step 3: Communications and Networking

When implementing smart submetering systems, you will require a sufficient communication network. Your solution provider can help with this stage, as each implementation differs, but it typically involves purchasing and deploying components such as gateways and receivers. Depending on the specific technologies chosen, this can involve wired systems or flexible wireless infrastructure, e.g. LoRaWAN gateways or cellular receivers.

Step 4: Installation and System Setup

Installation and system setup are best done by a qualified, certified professional. Many plumbing systems are complex, especially in retrofit projects, as they were typically not designed with submetering in mind. Submeters should be fitted at the unit’s water entry point. AMR and AMI solutions will require additional system configuration, testing, and validation. A key aspect of any installation is to minimize the disruption caused to tenants.

After installation, the system should be commissioned. This includes device registrations, initial readings and checks, communications testing, and data validation.

Step 5: Billing Setup and Tenant Communication

Before switching to any new system, tenants should be clearly informed of any changes. This helps with tenant satisfaction but may also be a regulatory requirement. Always ensure that your new submetering system is both compatible with and integrated into your existing billing systems and platforms, if any.

Billing software should be correctly configured to ensure that each unit is associated with the correct submeter, all submeters are reading correctly, and that all fees being applied are correct.

Step 6: Monitoring, Maintenance, and Optimization

After a successful installation, it’s important to continue monitoring the system. This is essential for detecting leaks and tracking performance. Data-driven insights can help landlords optimize water usage, target maintenance budgets more effectively, and maintain system efficiency over time.

How to Communicate Water Submetering Changes to Tenants?

Poor tenant communication can be a major source of tension before, during, and after any water submetering implementation, so it’s essential to provide tenants with sufficient information about this process.

Before implementation, tenants should be told:

What is changing

Why it is changing

When it will happen

How changes affect rent

How changes affect water billing

What new charges, if any, are permissible under the law

What the new water bills look like with an example bill

Where the new submeter is

What the submeter measures

How the dispute process works, along with any adjustment mechanisms

How data privacy works

How leak alerts work
Who to contact for support

Some jurisdictions may have additional regulations governing water submetering and tenant communications. It’s essential to understand all state and local regulations before implementing a solution.

Costs of Multifamily Water Submetering

A common concern from building owners and landlords is the overall cost of water submetering. Deployments can vary considerably in cost depending on unique operational requirements, specific practical conditions, and the chosen system. As such, every deployment is unique and incurs its own set of associated costs.

As an illustrative example, we can consider a 200-unit California apartment building and compare the hardware and installation costs for Mainlink’s full submetering solution with those of a typical traditional hardware solution across two deployment scenarios.

A typical mechanical installation can look like this:

Meters (200 hot, 200 cold): $37,000

Transceivers (400): $32,000

Repeaters (6): $2,400

Remote meter displays (200): $25,000

Gateway (1): $2,100

Labor: $54,000

Total costs: $152,900

The costs of Mainlink’s smart submetering solution can look like this:

Meters (400 ultrasonic): $70,000

Gateways (2): $3,000

Labor: $30,400

Total costs: $103,400

These costs are an illustrative estimate based on a hypothetical 200-unit California apartment, and actual implementations will vary depending on local factors. These examples don’t include additional costs such as taxes, plumbing changes, tenant communication, billing setup, or costs incurred from property-specific challenges.

You can use this simple calculator for property managers to calculate potential costs of the smart metering system.

Across the U.S., meter hardware and installation costs vary by project, so property owners should request detailed cost calculations from their submetering partner.

ROI vs Upfront Investment Costs

The ROI on multifamily water submetering depends on the property’s water costs, installation requirements, billing structure, and ownership period. Potential financial benefits include improved utility cost recovery, lower overall water consumption, fewer leaks, and better visibility into operating expenses and NOI.

To evaluate water submetering as an investment, owners need to compare all upfront and recurring costs, including meters, installation, plumbing modifications, connectivity, software, billing, maintenance, and support, with the potential financial benefits. For example, the U.S. Department of Housing and Urban Development’s research suggests that consumption declines sufficiently under submetering to recover the system’s cost over relatively short timeframes.

A simple payback formula is:

Simple payback period = installed upfront cost / annual net benefit

The annual net financial benefit can include verified water and leak-loss savings, recoverable utility costs, and labor savings, minus any recurring submeter costs. However, actual results vary by property. Submetering may provide a strong ROI when potential utility recovery and operating savings outweigh any upfront and ongoing costs, so owners should calculate payback using property-specific data.

Multifamily Water Submetering Challenges and Considerations

Water submetering is an effective management tool with major financial and operational benefits, but successful implementation requires careful planning. The following challenges can impact feasibility, cost, compliance, and tenant satisfaction.

Upfront Capital Requirements
At the practical level, high upfront capital requirements can prevent investment. However, a holistic evaluation of the payback period, capital budgeting constraints, and financing options can make the investment more feasible.

Diverse Local, Regional, or National Regulatory Requirements
Water submetering is typically regulated at the state and local levels, with requirements that vary hugely between jurisdictions. Some states may have complex billing rules and meter accuracy standards, while others may heavily restrict the types of submetering allowed; others still may require submetering in certain types of development. The risk for owners is that non-compliance can result in fines, legal disputes, and system removals. Therefore, collaborating with an experienced, reputable provider can mitigate these risks by providing a knowledgeable partner.

Submetering rules vary significantly by state, city, lease type, property use, billing method, and tenant notice requirements. There is no universal rule or regulation governing their use, so it is essential for property owners to confirm local rules before implementation.

Retrofit Complexity
Retrofits can be considerably more complex than implementing water submetering from the ground up in a new build scenario. This can result in higher unit costs, longer installation timelines, and greater disruption to tenants. However, working with a trusted provider and experienced installers can mitigate these issues.

Tenant Pushback and Satisfaction
Many tenants used to RUBS or other allocation-based systems may be resistant to change. Common concerns from tenants include fears of higher monthly costs, perceptions of new and unfair fees, and distrust in meter accuracy. The potential for increased customer service workload due to billing disputes or poor tenant satisfaction can cause some owners to delay investment into new systems, but with clear communication and explanations of billing methodology, tenant concerns can be addressed. Many tenants respond well to the fact that they pay only for what they personally use, and access to unit-level consumption data via app or user portals increases transparency and provides clear data to help resolve disputes.

Data Privacy and System Security

Modern smart water submetering systems rely on connected systems, which introduce technical and cybersecurity considerations. Some landlords may worry about the risk of unauthorized access to consumption data, data breaches in cloud-based platforms, and system outages affecting billing accuracy. However, most modern submetering systems integrate security features into their design, and by partnering with a trusted, reputable provider that meets strong cybersecurity standards, landlords and tenants can be confident that their data is safe.

Ongoing Operational Complexity

A common concern when upgrading to a submetering system is that it introduces new operational responsibilities that property managers may not be ready for. These include monitoring system performance, managing billing cycles, or handling new types of tenant disputes. In some cases, these activities fall entirely onto property managers; in others, they can be outsourced to more comprehensive management services.

Submetering vs RUBS: What’s the Difference for Multifamily Water Submetering?

RUBS is a billing allocation method, whereas submetering is a multifamily water billing method based on actual, measured consumption. Water submetering allows tenants to be billed for actual water consumption instead of hypothetical allocated consumption under RUBS.

The problem with RUBS (Ratio Utility Billing Systems) is that costs are allocated using static formulas, such as occupancy or square footage, rather than actual water consumption. This is a problem for property owners and some tenants: property owners typically shoulder more of the utility costs, while some tenants pay for water they don’t use, and others don’t pay their fair share. While RUBS is easy to implement, it’s less effective than smart utility management solutions at recovering utility costs and reducing water costs.

Water submetering solves these problems by using individual water meters for apartments, condos, or other units. This ensures precise billing based solely on individual consumption and allows landlords to pass utility costs directly to those who generate them. Fair, transparent billing can reduce tenant disputes.

The table below summarizes the differences between RUBS and water submetering:

	RUBS	Water Submetering
Billing Transparency	Poor transparency	High transparency
Implementation	Simple to implement	More complex implementation
Water Consumption	No need to change behaviour	Reductions in consumption
Accuracy	Does not track tenant water consumption	High accuracy; actual consumption is tracked

When Multifamily Water Submetering May Not Be The Right Fit?

Although multifamily water submetering is a practical investment in better water management tools and practices for many property owners, it isn’t a foregone conclusion. There are scenarios in which multifamily water submetering is unnecessary despite its many benefits.

Generally speaking, water submetering might not be the right fit across these six scenarios:

Inaccessible plumbing
Complex risers or shared plumbing can make submetering difficult, as meters need to measure water supply at the unit level.

Excessive retrofit complexity
Where existing infrastructure is complex, the retrofit requirements may prove a substantial barrier to implementation. This can include significant pipe cutting, inadequate wall or ceiling access, complex risers, substantial restoration work, too many occupied units, or other logistical problems that make installation impractical or financially difficult.

Local regulatory issues
Local rules may restrict how water can be metered, billed, or disclosed, posing challenges for implementation. In some scenarios, property owners may conclude that water submetering is unnecessary when faced with specific local requirements.

Water costs are already low
With low annual utility spending, water submetering may offer limited potential for savings or cost recovery, thereby resulting in a longer payback period. Some owners may be content with existing arrangements and therefore will not wish to invest money upfront into systems that won’t offer a fast ROI.

Short-term property ownership
In some cases, owners may not expect to own a particular property long enough for the investment to make financial sense.

Tenant relations
In some cases, implementing water submetering may pose a challenge for tenant relations. As billing changes create resident questions, potential for disputes, perception of increased rent or bills, and a need for ongoing communication or support, some owners may opt to avoid these issues entirely by avoiding submetering.

Is Multifamily Water Submetering Worth It?

The benefits of water submetering are clear and tangible: potentially significant reductions in water consumption, greater transparency and fairness for tenants, increased operational efficiency, improved NOI, and reduced maintenance costs. These are measurable financial, operational, and tenant-related benefits that make water submetering a compelling investment for property owners.

Although not suitable in every multifamily scenario, water submetering can be a financially beneficial solution for many property owners when the benefits outweigh the installation costs. A diverse industry with multiple provision models, billing and administrative support, and a wide range of technology types and implementations means there are flexible, versatile water submetering options to suit a wide range of needs.

Ultimately, successful submetering combines the right technology with the appropriate systems. For owners looking to better manage utility expenses and gain more useful data, water submetering is a valuable long-term water-management strategy that’s well worth the investment.

Multifamily Water Submetering: How it Works, Providers, Billing