How to submeter water in a multifamily property

Without an accurate way to measure individual usage, property owners often end up paying for tenants who use more than their fair share. Submetering offers a practical solution by tracking water usage per unit, leading to fair billing and better resource management. It also encourages tenants to be more mindful of their water consumption, promoting sustainability within the property.

This guide will walk you through how to submeter water in a multifamily property, covering key aspects such as planning, installation, compliance, and ongoing management. Whether you’re looking to reduce operational costs or improve tenant satisfaction, implementing a submetering system can make a significant difference. Read on to discover the steps involved in setting up an effective water submetering system.

Understanding water submetering

Before diving into how to submeter water in a multifamily, it’s important to understand what water submetering is and why it’s a smart investment for multifamily property owners. Water submetering allows for individual measurement of water usage for each unit, providing detailed insights into consumption patterns. This understanding can help property owners make informed decisions about water management and billing.

What is water submetering?

Water submetering is the process of installing individual meters for each unit within a multifamily property to measure water usage separately. Unlike a master meter that calculates total consumption for the entire property, submeters provide data on how much water each tenant actually uses. This allows property owners to bill tenants accurately and promotes responsible water usage.

There are several types of submetering systems, ranging from basic manual meters to advanced digital and wireless solutions. Manual systems require physical meter readings, while smart meters provide real-time data accessible via apps or web portals. Choosing the right system depends on your property’s infrastructure and budget.

Why consider submetering for your property?

Submetering provides significant financial and operational benefits for multifamily property owners. It eliminates the guesswork in billing by ensuring tenants are charged based on actual water usage, leading to fair cost allocation. This transparency encourages tenants to be more conscious of their water consumption, often resulting in lower overall usage.

Without submeters, property owners may face frequent disputes over shared water bills and increased operational costs. Installing submeters can also enhance property value, making it more attractive to potential investors or buyers. In many cases, submetering leads to improved tenant retention by fostering a sense of fairness and accountability.

Planning your submetering system

Proper planning is essential to ensure a smooth submetering installation. You’ll need to consider the right equipment, budget, and setup for your property. By carefully organizing each aspect, you can avoid common challenges and ensure the system operates efficiently from the beginning.

What equipment is needed?

To implement a water submetering system, several components are required to ensure accurate tracking and billing. These include submeters for each unit, data collection devices, and billing software that compiles usage data into easy-to-read reports. Choosing high-quality meters and reliable data tracking tools is essential for long-term efficiency.

The placement of submeters plays a critical role in ensuring accurate readings. They must be installed at points where they capture all of a unit’s water usage without recording usage from shared spaces. Consulting with a professional can help identify the best installation points for optimal performance.

How to choose the right submeter type?

Selecting the right type of submeter depends on the size of the property, budget, and management preferences. Mechanical submeters are cost-effective but require manual readings, which can be time-consuming for large properties. Digital submeters provide remote access to data, making it easier to track usage without physically checking each unit.

For maximum efficiency, wireless smart meters offer real-time monitoring and automated reporting. They come with features such as leak detection alerts and historical consumption data, which help property managers make informed decisions. Investing in a wireless system can save time and enhance operational efficiency.

Implementation process

Once you’ve planned how to submeter water in a multifamily, the next step is to execute the installation and inform tenants about the changes. Proper execution ensures that the system functions correctly and that tenants understand the new billing process. This phase is crucial for minimizing disruptions and ensuring a smooth transition.

What are the steps to install submeters?

The installation process starts with an assessment of the property’s plumbing infrastructure to determine the best placement for submeters. Next, property owners must choose the appropriate meter type that suits their needs and budget. Professional installation ensures accuracy and compliance with local regulations.

After installation, the system should be tested to confirm accurate readings and data collection. Property managers should also establish a clear process for recording and billing usage. Implementing a well-organized installation plan helps avoid disruptions and ensures a seamless transition.

How to manage tenant communication?

Introducing submetering to tenants requires clear and transparent communication to ensure a smooth transition. Start by explaining how submetering benefits them, such as fair billing and improved control over their expenses. Providing detailed guides or holding informational meetings can help address any concerns.

It’s essential to inform tenants about how the billing process will work and set clear expectations. Offering a point of contact for questions or concerns can improve tenant cooperation and satisfaction. Proper communication helps minimize resistance and ensures a positive experience for everyone involved.

Legal and compliance considerations

Compliance with legal regulations is crucial to avoid penalties. It ensures a fair billing process for tenants. Adhering to these regulations protects both landlords and tenants.

What regulations govern submetering?

Water submetering regulations vary by state and municipality, with specific requirements for installation, billing, and tenant notifications. Some states require landlords to obtain approval before installing submeters, while others mandate specific billing disclosures. Property owners must familiarize themselves with local laws to remain compliant.

Failure to comply with regulations can lead to legal issues and financial penalties. Consulting with a legal expert or local utility provider can help navigate the complexities of submetering laws. Staying informed about changes in regulations is essential for long-term compliance.

How to ensure billing compliance?

Accurate and transparent billing is key to maintaining compliance and tenant trust. Property managers should ensure billing statements clearly outline individual usage and applicable charges. Using multifamily property management software can automate billing calculations and reduce the risk of errors.

In addition to accuracy, property owners should provide tenants with easy access to their usage data. Regular audits and transparent communication help build trust and ensure compliance with fair housing laws. Keeping detailed records of billing history can also serve as protection in case of disputes.

Managing submeter operations

Once the submetering system is in place, ongoing monitoring and maintenance are essential for continued efficiency. Regular monitoring ensures that the system operates correctly and billing remains accurate. Timely maintenance prevents potential issues that could disrupt services or lead to increased costs.

How to read and monitor submeters?

Submeter readings can be collected manually, remotely, or automatically, depending on the system in place. Manual readings require a routine schedule to ensure consistent tracking and avoid missed billing cycles. Remote and wireless systems provide real-time monitoring and automatic data uploads.

Monitoring consumption trends helps identify potential issues such as leaks or unusually high usage. Using a cloud-based system allows property owners to track water usage from anywhere, offering greater flexibility and control. Regular monitoring helps maintain accuracy and ensures fair billing.

What maintenance is required?

Regular maintenance is critical to ensure submeters continue functioning correctly. This includes periodic inspections to check for leaks, tampering, or wear and tear that could affect accuracy. Addressing issues early helps prevent costly repairs and ensures consistent billing accuracy.

Property managers should also keep track of maintenance schedules and service records. Preventative maintenance can extend the lifespan of submeters and improve overall efficiency. Establishing a routine maintenance plan ensures that submeters remain reliable over time.

Learn more

Want to learn more about the latest from MRI?

Join us for MRI Innovation Days to see how MRI Software’s technology is changing the game!

What is the typical return on investment for installing a submetering system?
How do submeters impact property value and marketability?
What are common troubleshooting issues with water submetering systems?
On-Demand Webinar

AI’s Impact on Real Estate: 8 Experts, 8 Real Scenarios

Artificial intelligence is transforming corporate real estate, streamlining operations, reducing costs, and driving smarter decision-making. In this on-demand webinar, we go beyond the hype to showcase eight real-world scenarios where AI is making a …

Watch the Webinar

Reinvest in some more great content:

Webinar

MRI Living Innovation Days

Find out more

Select your region

45000+

Clients

20.1m

Units

4.2m

Leases

400+

Partners

170+

Countries