You read that correctly. Eliminating water and sewer expenses can become a reality for your multifamily property. The simple way to accomplish this is by submetering water and sewer utilities.
Property owners and managers who have experienced submetering realize the value of submetering tenants for utilities. When tenants aren’t paying for their own metered water & sewer usage, they will often be less likely to report/fix leaks or conserve water. Many perspective tenants are also attracted to rental properties when they can be assured they are not paying for someone else usage or leaky toilet high usage from other units at the same property.
Over the years, various government laws and regulations have encouraged or even required the practice of submetering. Several localities mandate that new multifamily construction have submeters installed in all units. Multifamily property investors will often seek out properties to purchase that are already equipped with submeters, knowing that utilities expenses based on consumption are being paid for by the tenants. Property owners also recognize that installing submetering systems at the time of purchase can immediately increase property value and reduce long term utility expenses.
On average property owners recover $480-$540 per unit each year when water submetering systems are in place. A newly installed submetering system typically takes 12-18 months to pay for itself depending upon how high a property’s water and sewer expenses are and how many units a property has.
In just over a year, you can have a complete water and sewer utility submetering system installed and paid for while eliminating water and sewer liabilities and increasing the value of your investment property.
Andris Silins has a combined 20+ years experience in the utility submetering and multifamily residential real estate industries. He is currently the Operations & Technology Manager at WaterWatch Corporation.