Submeter vs Direct Meter
When dealing with utilities in a multifamily property, you can choose to handle utilities in a variety of different ways. The property owner can pay the utility bill and absorb the variances in the monthly utilities or the utility costs can be allocated to the residents. When utilities are allocated to residents, usage will drop since residents are inclined to conserve utilities and save money. Two popular avenues to pass utility expenses to residents are Direct Metering or Submetering. Direct Metering means a utility meter will be installed for each unit and the utility company will monitor and bill the resident. This is not available in all situations due to utility company requirements and local regulations. Submetering involves the installation of meters on each unit and the residents will pay for their utility consumption. Submetering companies like NES can collect the utility bills and then pay the property’s main utility bill.
When you choose to install submeters, individual meters are installed at each particular unit to measure the utility consumption – water, gas, and/or electric. Submeters are installed between the master meter and individual units, which allows for the exact measurement and billing of that utility to that renter.
NES is a leading submetering company in the United States which manages, reads, and bills thousands of units every month. Submetering is highly regulated by municipalities, cities, and states. Read more about submetering here.
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What is Submetering?
Utility Submetering involves the installation of equipment to measure and bill each unit’s water/sewer, gas, and electric use. Submetering has been used since it was invented in the early 1920s.
What are the benefits?
If you are trying to recover operating expenses for your apartment complex, Submetering is the answer.
When a property installs water submeters, tenants work harder to conserve, therefore reducing overall consumption dramatically. We typically see 15-30% water savings. Submetering is also instrumental in detecting leaks. Common area water usage can be accurately measured and billed accordingly.
Submetering can also increase the value of your apartment complex or mobile home park.
Bottom line: The real estate owner is able to save money since the tenants pay for the water they used. The return on the investment is usually seen within 12 months.
What types of real estate can be Submetered?
All types of real estate can be submetered. We serve both new construction and existing properties, those with equipment in place and those requiring equipment. Properties types include apartment communities, mobile home parks, townhomes, and condominiums. We specialize in properties with 100+ multifamily units.
What is RUBS and how can it help real estate that can’t be metered?
RUBS is an acronym for Ratio Utility Billing System. RUBS uses formulas to allocate utility costs for water/sewer, gas, and electricity when meters are not an option or if your investment dollars can be better utilized elsewhere. We have a variety of RUB options to choose from and our team will outline them in accordance with your goals.
Does Submetering have regulations?
Yes. Lots of regulations. The laws and regulations regarding submetering multi-family properties change frequently and vary greatly per state and county. If you plan on installing and servicing your own Submeters without NES (National Exemption Service), we highly recommend staying up to date with the latest regulations.
Can National Exemption Service handle my large property?
National Exemption Service (www.Submeter.com) is one of the largest Submetering companies in the USA. We currently provide Submetering and RUBS services in over 40 states with a focus on properties with more than 100 multifamily units. NES is uniquely structured to handle these large projects efficiently and professionally.
Our dedicated compliance team actively keeps up with state and county regulations, in-house customer phone and email support team provide friendly assistance and the President & Owner actively manages the entire team. Protect yourself from liability and let NES handle your real estate.
National Exemption Service (NES) President & Owner is also a voluntary board member of the Utility Management & Conservation Association which makes him privy to best practices in the industry.Warren
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