Why Submeter Apartments?
For an apartment community, covering the cost of utilities in the absence of unit meters involves forecasting the expected annual cost and embedding it in rent. But what happens when the utility unexpectedly raises rates or consumption escalates beyond the expected value? The answer is simple – lost revenue. The real question is what can be done to control utility expenses, adjust to utility rate increases, and reduce consumption? That answer is also simple – install submeters.
- Reduced Consumption – There is an old adage, “out of sight, out of mind.” When residents don’t pay for a resource directly they have no incentive to conserve. Shifting the utility payment paradigm from the property to the consumer creates an immediate reason for tenants to reduce consumption. Leaks and other issues are quickly reported. Residents become responsible, and responsibility changes personal habits. Statistically, installing submeters, and billing residents directly for their usage reduces consumption by 20-40%.