The Benefits Of Separate Utility Bills For Your Property

While the norm is to include utilities in an apartment unit’s rent, many owners and managers are thinking twice due to the tenants that consumer at a much higher rate than others. These utility users may represent a smaller percentage, but they are linked to a substantial rise in expenses. This affects the residents as well, because since these utility bill rises and expense increases are included in the rent, tenants who are responsible with their usage have to subsidize high utility users. Because of these factors, more and more property owners are now billing tenants directly.

The Cons of Including Utilities In A Multifamily Property

If your property is a master-metered community, there is no visible way to find out the individual usage of each resident. Tenants who continually have their heat or air conditioning running or fails to report broken pipes and leaks contribute the most to utility expenses, but their neighbors are the ones who pay for this behavior. Because the amount they pay isn’t relative to the amount they use, these tenants are not made aware of their consumption and their behavior continues.

One other drawback to including utilities is that rent is then made much higher to compensate for the expenses. If utilities are billed separately, rent can be lowered and the property is then made more attractive to potential tenants. Separating utilities is also a great way to encourage utility conservation and responsible usage, leading to a general decline in total costs.

The Submetering Solution

The most effective and beneficial way to separate utilities from monthly rent is utility submetering. Consumption of each unit is measured and the data collected by the submetering system is then calculated and billed. It benefits owners by protecting them from irresponsible tenant usage and unexpected utility price rises. The collected data can also be used to spot maintenance problems, such as leaks and other issues.

This solution also greatly benefits tenants because they are now made accountable for their usage. Those who are responsible with their utilities can see lower costs than if utilities were included in their monthly rent. With submetering, they’re lifted of the responsibility to cover their neighbors’ consumption as well.

When you make the decision to bill utilities directly to tenants, this results in financial savings for all parties, an increase in Net Operating Income, and a better understanding of responsible utilities usage. For a complimentary consultation, connect with United Utilities Services now!