Sub Metering Florida, Submetering Florida

Submetering Florida, Sub Metering Billing Company

(888) 825-2590

Sub-Metering

"Without direct financial incentives, residents are not motivated to control their water usage"

It is not a secret that water and sewer fees across America are on the rise. According to a 2003 article in the Wall Street Journal, costs of water increased 53% from 1999-2003. On the other hand, according to another study, estimates indicate that sub-metered properties use between 18 and 39 percent less water. The fact that water and sewer costs are rising faster than the inflation rates is a significant factor in the growth of sub-metering and utility billing systems.

Along with a property owner’s profits, increasingly expensive water is being flushed down the drain by residents who are not financially accountable for their own usage. The installation of low flow devices helps, but water sub-meters represent the most viable solution for property owners to control these rising costs and pass them along fairly to residents.

Easily installed and monitored meters for each unit allow for accurate measuring and billing based on their individual consumption. The sub-meters not only reduce a property owner’s overhead and increase its NOI, but they also promote the conservation of water among residents who become directly responsible for their own usage.

Most importantly, sub-metering does not adversely affect occupancy. Recent studies have indicated that monitoring and billing for a resident’s water usage has no effect on a property’s turnover rate. However, measurable positive effects resulting from sub-metering include: increase profitability, lower water/sewer costs, eliminating water/ sewer fees from the rent equation, and generating increased awareness of the importance of conservation among residence.

Multi Family Owner Benefits

Direct Owner Benefits

The owner of a dwelling can benefit from submetering or allocation through cost transfer, operating expense recovery, increased property value, and by using submeter data as a management tool.

Cost savings - Water and sewer fees can be one of the more significant operating costs for multi-family dwellings. Years ago, apartment rent included electricity, natural gas and cable TV. Over the years, these costs have been transferred to the resident via individual metering, with a corresponding reduction in consumption.

Operating Expense Recovery - Over the past 5 to 10 years, utility costs have out paced inflation by 300% to 400%, averaging about 8% a year nationally because water utilities are paying for repairing aging infrastructure, installing treatment facilities to meet more stringent water quality standards, and striving to meet increasing demand. Submetering allows an owner the opportunity to manage one of the remaining uncontrollable costs, the water and sewer bills. In 1995, the average apartment owner paid $21 per month per apartment unit in water and sewer charges. By 1999, this figure had increased to around $30.

Increased Property Value - The value of an apartment complex is proportional to its net income. A reduction of net expense through conservation and recovery of water/sewer utility expense adds to the owners' net operating income, without increasing rent. Property value rises by 12 times the increase in annual net income. A net reduction after expenses of $30 per month per unit thus increases property value by $4,320 per unit. In most cases, the cost of meters and installation can be tax deductible as a capital improvement to the building. The properties net operating income can be increased, resulting in a greater loan and resale value to the owner. Since the payback period is generally under two years, submetering provides owners a good opportunity to increase net operating income..

Management Submetering provides an owner with information on individual dwelling unit use allowing for identification of occupancy rates and water use and trends. Monitoring use and trends can be useful in identifying leaks and excessive use. Some billing systems have built in monitoring and flagging capabilities, identifying plumbing leaks long before the utility master meter water bill arrives.

Sub-Metering Will Help Lower Your NIO

Address:
P.O. Box 1811
Dania Beach, FL 33004

Phone:
(888) 825-2590