In the complex landscape of multifamily property management, one of the key challenges faced by property owners and administrators is the handling utility billing. Traditional methods, such as relying on flat rates derived from building’s master meter data or using ratio utility billing, which calculates utility bills based on industry-accepted formulas, considering apartment size, occupancy, layout, amenities, etc. often lead to inadequate cost recovery. That leaves property owners shouldering the burden of utility expenses. However, there is an advanced iot solution that not only streamlines billing processes but also brings a wide range of benefits. Submetering, unlike master meter data, collects enormous amounts of resources consumption data assisting in pinpointing inefficiencies within the building, achieving performance objectives, and enhancing occupant awareness of resource consumption.
To put it in simple words, submetering is a measurement of water, gas or electricity consumption data in a specific location (apartment, house or any other property unit).
Submetering is not just a process, it is a strategic investment for multifamily property owners and landlords looking for an advantage in the ever-evolving real estate market. At its core, submetering involves the collection of utility usage data from specific locations within a property. With the introduction of ultrasonic water meters, the installation of submeters has become simpler than ever. Paired with the meter data management platforms, property owners can now leverage submetering to bill tenants based on actual water usage while ushering in a new era of transparency and efficiency while reducing costs.
1. Transparency towards your clients:
Submetering instills transparency in the billing process. Tenants are billed fairly based on actual consumption data, fostering a relationship of trust and equity between property owners and residents. Finally, you will put an end to tenant complaints about unfair utility charges.
2. Cutting utility costs:
Installing submeters allows property owners to share the responsibility of utility costs with residents. This not only reduces the financial burden on property owners but also promotes sustainable water usage among residents. When tenants are responsible for their own utility payments, they tend to be more mindful of consumption, resulting in reduced overall utility costs for the property.
3. Increasing property value:
Submetering isn’t just an investment in utility management, it’s an investment in the property itself. The installation of submetering infrastructure enhances the property’s value by making it an attractive prospect for potential buyers.
4. Sustainable resources usage:
Beyond mere cost savings, submetering plays a pivotal role in promoting responsible water usage. Educating tenants about their consumption habits can lead to an overall reduction in water consumption within the building, contributing to water conservation efforts. Studies suggest that submetering can lead to water savings of around 15-30%. By providing a mobile application for consumption monitoring, property owners encourage residents to be more sustainable. This application fosters a community committed to environmental responsibility and financial efficiency.
5. Advanced data monitoring and management:
The integration of submetering with remote data management software provides property owners with invaluable insights. From identifying and resolving meter issues to efficiently handling maintenance processes, property owners can access real-time data that empowers informed decision-making.
6. Reduction of insurance claims:
With the aid of advanced ultrasonic water meters and data management platforms, property owners can proactively detect and address water leaks. This not only reduces accidents caused by water damage and prevents wasted resources. This also safeguards against potential property damage, minimizes liability costs, and decreases insurance claims.
While the advantages of submetering are clear, there may be instances where it might not be the optimal solution. If a property has relatively uniform utility consumption patterns among its residents with little variation in water, electricity or gas usage – the benefits of submetering may be outweighed by the associated installation and maintenance costs. In such cases, a flat-rate billing system might be simpler and more cost-effective.
Also, in smaller properties or buildings with a limited number of units that share similar utility consumption profiles, the installation of individual submeters may not be justified. The cost of installing and maintaining submeters might not provide sufficient returns in terms of increased billing accuracy or resource conservation. However, it is essential to carefully evaluate the unique characteristics of each property to determine the most suitable approach.
In conclusion, submetering is more than a utility management tool, it isit’ a strategic investment that empowers multifamily and other types of buildings property owners to deliver superior services to their tenants.
From enhancing transparency in utility billing processes to cutting utility costs and promoting sustainable energy management practices, submetering emerges as a catalyst for operational efficiency and increased property profitability.
Elevate your property’s efficiency and profitability with our water submetering solutions.