Submetering in California

6 Things You Need To Know When Choosing A Submetering Company


Submetering Apartments in California
Submetering Apartments in California is very common. National Exemption Service Submeters various apartment buildings in San Diego, Los Angeles, San Francisco, Sacramento, and other parts of California.

Submetering in California requires knowledge of the strict regulatory state laws surrounding utility management as well as conservation. Starting January 1st, 2018, new regulations in California regarding multi-family construction are in place. If you own or are currently developing multi-family construction in California, these new regulations apply to you.

If you want to learn how much you can save by submetering or need an estimate on installation costs, please scroll down.

What is Submetering?

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 1920’s.

What are the benefits of Submetering?

When a property takes advantage of submetering, it raises consumer awareness, users work harder to conserve, therefore reducing overall consumption dramatically. When Submetering water, we typically see around 30% water savings. The benefit of this is the real estate owner can save money since the tenants pay for the water they use. Common area water usage can be accurately measured and billed accordingly. The return on the investment is usually seen within 12 months.

What type of real estate is 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. Property types include medium and large apartment communities, mobile home parks, townhomes, condominiums, and shopping centers.

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 submetering is 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.

How important are Submetering regulations?

Submetering regulations are very important. The laws and regulations regarding submetering multi-family properties change frequently. If you plan on Submetering your own real estate, we highly recommend staying up to date with the latest regulations.

National Exemption Service ( is one of the largest Submetering companies in the USA. We specialize in properties with 100+ multifamily units, we are uniquely suited to handle these large projects efficiently and professionally. NES has dedicated compliance staff to keep up with state regulations. National Exemption Service (NES) President and owner is also a voluntary board member of the Utility Management & Conservation Association which makes him privy to best practices in the industry. National Exemption Service currently services real estate in various California cities including San Diego, Los Angeles, Sacramento, and San Francisco.

Current Submetering Regulations in California

  • All new multi-family construction started after 1/1/2018 must be submetered.
  • Ratio Utility Billing System (RUBS) can be done for existing buildings before 1/1/2018

6 Things You Need To Know When Choosing A Submetering Company

When choosing a Submetering company for your commercial or residential properties, it’s important to consider the following:

Water Submeters
Submetering in California requires attention to unique laws and regulation
  1. History of the submetering company and ownership
  2. Type of meters the submetering company offers
  3. Cost of meters (Many companies markup over 50%)
  4. Length of warranty offered on meters
  5. 24/7 Auto leak detection
  6. Ease of payment portal and autopay for tenants

NES is American-owned and operated by its founder since 1988. Submetering has changed dramatically since the 80’s, new meters are state-of-the-art wireless devices that report usage back daily. NES provides a warranty to landlords that covers all mechanical issues related to the meter. Unlike competitors, NES sells or leases the meters at cost which is unheard of in the submetering business. NES also offers leak detection services for an additional fee.

Do you own or manage a multifamily property with 100 or more units?

Get a FREE quote and learn how much you could save by Submetering.

We will contact you within 1 business day via your preferred method of communication.


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