Submetering vs RUBS
Submetering is the measuring and invoicing of residents for the utility consumption that occurred in a given amount of time. Separate meters are installed between the master meter and the individual unit. Typically, residents are billed monthly for the consumption that occurred. The most common utilities that are submetered are water, gas, and electric. Water is by far the most common utility to be submetered since it’s typically the highest expense for a property owner. Gas and electricity can also be submetered.
RUBS is an acronym for Ratio Utility Billing System. RUBS is a method of billing multifamily real estate and commercial real estate that distributes utilities to each resident based on several factors including occupancy, square footage, etc. When residents are billed for utility usage, consumption significantly decreases.
Submetering is the most accurate form of utility measurement and resident billing. However, in some circumstances, it is not possible to install submetering equipment. In that case, RUBS is the best alternative. RUBS requires no equipment which also results in very little upfront costs.
NES is a submetering billing company that installs meters, reads the meters, bills residents, and provides phone and email support for residents and property managers. NES can submeter water, gas, and electricity across the country. Not all states, counties and municipalities permit submetering, and regulations change frequently. NES will verify and monitor all regulations on your behalf.
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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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