Why Apartment Submetering Matters for Utility Cost Recovery and Resident Billing
Why Submeter Apartments?
For an apartment community, covering utility costs in the absence of unit meters involves forecasting the expected annual cost and incorporating it into the 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 rising utility rates, 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%.
Revenue Recapture – Billing tenants directly for what they consume creates a revenue recapture stream that immediately adjusts to utility rate changes or increased consumption. Submetered billing protects property owners and management companies from suffering loss through unanticipated utility changes.
Increased Property Worth – The worth of a property is determined in part by its capitalization rate (Cap Rate). In the simplest terms, the Cap Rate is the Net Operating Income (NOI) divided by the value of the property. The NOI is the annual income after operating expenses are removed. By reducing utility consumption and creating a revenue recapture program for the remaining utility charges, expenses are decreased, and the NOI increases. Hence, the Cap Rate is positively affected, which increases the actual worth of the property.
Why install submeters? For a small initial investment, an apartment community can reduce consumption, recapture revenue, and increase property value. Fill out the form below and a Think Utility Services representative will contact you for a free site survey.
Request an Apartment Submetering Quote
Need help improving utility cost recovery at your apartment community? Think Utility Services specializes in apartment submetering, utility billing, and ongoing maintenance services designed to help property owners and managers recover utility expenses fairly and accurately. Our experienced team works with multifamily communities of all sizes, providing customized solutions that reduce waste, increase billing transparency, and encourage resident conservation. From system design and installation to monthly billing and support, we make utility management simple and effective. For decades, Think Utility Services has built a reputation for exceptional customer service, industry expertise, and dependable results. We partner closely with property managers, ownership groups, and developers to deliver cost-effective submetering solutions that improve net operating income while enhancing resident satisfaction. Whether you are exploring submetering for the first time or looking to upgrade an existing system, our knowledgeable team is ready to help you find the right solution for your community. Contact us today for a free consultation and discover why multifamily properties nationwide trust Think Utility Services.
