What is Apartment Submetering?



Definition

Apartment submetering is a process that allows a building owner or property manager bill tenants for individual measured utility usage. The approach makes use of individual water meters, gas meters, or electricity meters.



Why it Matters

Typically a multi-tenant building has one master meter for the entire property is responsible for the entire utility bill. Submetering allows property owners to account for each tenant’s usage in measurable terms. By fairly billing each tenant for their portion, submetering promotes conservation and offsets the expense of bills generated from a master meter. Submetering is legally allowable in most states and municipalities, but owners should review local and state compliance and regulations. Before submetering, many landlords either included the utility cost in the bulk price of the rent or lease, or divided the utility usage among the tenants in some way such as equally, by square footage. Submetering provides an opportunity for building owners to shift their rising electricity costs to tenants. Now electric submetering software can allocate costs accurately and send out invoices automatically. This also enables building owners to buy electricity in bulk, which saves energy costs for everyone.



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