Cost to Separate Water Meters

Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes

I finally got an answer today on the cost to separately meter my intended 9 unit MF property...$8000 per meter just for the capital recovery fee for the city. Then add on any installation charges. I was shocked to say the least.

So, this new landlord will be allocating water bills and billing tenants for their portion. I have been researching the rules and think I have it figured out. Unfortunately, I haven't found any billing companies that will do it for me with less than 100 units. Anyone know of a company who will work with smaller properties?

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Craig E.

Investor · Sacramento, CA · Member since 2011 · 87 posts · 56 votes

12y

Why not have your own sub meters installed by a plumber isolating each apt and install in an easily accessible area. PM can read monthly and bill back at $0.01 per gallon (which includes admin and sewer impact fee). Some states require a formal water bill to the tenants, but you can create it or use a template. Install (all in) should be under $1k per.

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Joel OwensBusiness Member
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
Kim did you price this in not being able to separate the meters before you purchased??

Understand some tenants you might have to sick collections on them. They will argue over the 20 or 50 bucks and try your hand at evicting them over that while paying you the full rent.
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Kim H.
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Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
I am still in my feasibility period, so this is all information I am compiling. No final decision yet.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
@Kim H.

Is that to run separate services into the property or just to install a manifold and sub-meter?

We are looking to sub-meter a six unit at the moment - a trail balloon as it is not common here. The building is an old Victorian that has been converted and extended. While there is a separate hot water run to each unit (because the hot water tanks are in the basement), it does not appear this done with the cold water feed. Our biggest cost will be separating the internal plumbing; the actual water meters are a few hundred bucks apiece (they are able to be monitored and read remotely).
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Kim H.
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Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
@Roy N. sorry, but I guess I really don't know enough about metering to answer your question completely. I asked the city the cost of separating from one meter to nine and they told me $8000 per meter. I am assuming this is to run separate services to each unit. I didn't specifically ask about sub-metering, although I have tried to contact several companies to get costs on this and haven't gotten any return calls. Does the city also sub-meter?
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Kim H.
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Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
Maybe I asked my question to the city incorrectly?
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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
12y
it would make more sense if it was $8k for the 9 sep services.

Ours run $284 a meter plus $800 each if the latter has to have the service installed at the road because of single line water pressure issues.

Here a rental unit runs $60-$80/mo for water. (Liquid gold to the city.)

So assuming its $8k for all 9 units $80/mo could be a 1.5 year payback. Plus it should boost your resale value by at least the $8000.

If you decide to go on a shared basis there are water meter units mobile home parks use that could be installed adjacent to an intake manifold that would make billing very fair.

Good luck
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
@Kim H.

I got a high estimate also. They want to run new separate lines from the water main in the street to each unit. That involves tearing up the street which is a state highway, in my case. State permits needed to tear up state highway and maybe 2 flag men. Also the water co. wants new meters and shut offs at the curb for each unit so that they can turn off the water if a tenant doesn't pay or moves out. Around here the water co. is the fastest in turning off the utility much faster than either the gas co. or the electric co. All 3 are separate private co.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
@David Krulac

That's ridiculous. As long as your existing line is not undersized for the building, there should be no digging needed. If the City won't do it (ours doesn't), then you can install your own manifold and sub-meters just downstream from the City's bulk meter.

The key is having the independent water runs from each unit to your mechanical area {in particular the cold}.
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George Paiva
Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
12y
Here in CT the water stays with the owner, can't really separate out to each unit. Plus its the norm here for landlords to supply water (typically $60-80 a unit). I have 2 properties where its mixed commercial where there is one retail/store front then 3 apartments in the back. I may look into putting a new meter for each of the retail/store fronts then leave the legacy one for the apartments. I was thinking of doing this to make the commercial component more NNN lease with longer terms.
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Craig E.
Investor · Sacramento, CA · Member since 2011 · 87 posts · 56 votes
12y
Why not have your own sub meters installed by a plumber isolating each apt and install in an easily accessible area. PM can read monthly and bill back at $0.01 per gallon (which includes admin and sewer impact fee). Some states require a formal water bill to the tenants, but you can create it or use a template. Install (all in) should be under $1k per.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
@George Paiva

Our water stays with the owner as well. That is why we are going the route of sub-metering.
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Account Closed
Real Estate Investor · Rancho Mirage, CA · Member since 2008 · 109 posts · 56 votes
12y
Look into ratio utility billing systems (RUBS). You can bill back the utilities without expensive metering.
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Kim H.
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Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
It's per unit because I specifically asked "so you mean $72,000 total?". He even agreed it was crazy high. It is defined as a Capital Recovery Fee and he said the city council votes on the amount and that's what they have it set at. I guess no one every separates an existing meter.

I guess I can look into sub metering. If any companies would actually return phone calls....

There is so much to learn here. My simple residential real estate broker job is looking pretty good about now :)
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Kim H.
OP
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
The water bill is currently running around $20 per unit with only one person occupying each unit. Do you think $60 to $80 per unit per month is reasonable to assume with a maximum of 7 people in each unit (over half are 3 bedrooms)?
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Azeez K.
Investor · Atlanta, GA · Member since 2013 · 646 posts · 392 votes
12y
Hi @Kim H.

City of Atlanta gave me a quote of for installing ~$2000.00 per water meter. The price was for a quadplex. It was still a big investment to install the separate water meters. It seems the price you were quoted was high but again I can only speak based on my experience.

Instead of adding the separate water meters we decided to include a portion of the water cost in the monthly rent.

We also considered installing sub-meters however, based on what I was told we would need to get a monthly reading manually and then charge that amount to the units based on their usage. It seemed like a lot of work so we simply decided to add $50.00 to the monthly rent.

Hope this helps.
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Pam R.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
In Columbus we use Guardian Water & Power. I don't know what states they work in. They sub-metered our duplex - I can't remember exactly how much, but I'm guessing less than $500. Guardian reads the two meters and sends a monthly bill to the tenants, and the tenants send the payment to me. There is a $4.40 per month surcharge per unit from Guardian, and that is tacked onto the tenant's monthly bill. I use the tenant payment to pay Guardian the surcharge, and pay my quarterly water bill to the city. We did this 4 years ago, and it's great. Numbers between Guardian and the city always match up.
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Kim H.
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Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
@Pam R. I spoke with Guardian, but they only work with properties over 100 units. The only company I have found so far that will work with a small property charges $150 per month for the service. Right now the bill isn't even that much.
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Pam R.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
@Kim H - Wow. Sorry to hear that. Guardian is based out of Columbus, so they must be willing to work with smaller properties here.

As far as how much to bill - It's funny to see the difference in how much water/sewer tenants use. I had a couple who used $40/month, and a family of 4 next door who used $25. I wondered for a year whether there was a problem with the metering, and then the family moved out and the couple asked if they could move into the other side (more sun). Well, the $40/month bill moved with them, and the new couple who took over their apartment barely hit $20/month. And bear in mind, there is a $4.40 surchage included in that $20.

Here in Columbus I've seen apartments with a water surcharge by the person - $20/person per month.
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Jeff Greenberg
Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
12y
Has anyone had any experience with the inline remotely read systems. I have seen some that do not need power and you can feed the data to a computer for data collection and billing.
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Jean BolgerPro Member
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
12y
I also use Guardian (in Columbus)- my property is only 29 units. The submetering was done before I bought the place and I just took it over, so perhaps they have changed since then. But if I were you I'd call again- I have found their service to be fine but their communication a little flakey. And I can't see any benefit to them to only submeter very large complexes...
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Kim H.
OP
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
I will definately try them again tomorrow. I could be confusing them with another company or two. I have talked with so many people over the last few weeks and some on my list I've left messages with no response and others I've gotten only email responses from. They are all running together. Thanks for all of your input. It does help to hear so many different opinions and solutions.
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Ryan Watson
New to Real Estate · Indianapolis, IN · Member since 2013 · 170 posts · 23 votes
12y
When a contractor runs mainline up a street. It cost quite a bit of money for a crew to come in and install. To recover this cost they money they paid the contractor to install this, they charge everyone a flat rate if they dont hook in right away. Some cases they may charge this right away for everyone. It depends on the note that the city plays it. So as you state this is 8000 per unit, if you wanted separate lines. I would guess a dwelling would be no more than a 3/4" pipe from the main to the house. You could bore under the road, no need to dig it up if the conditions are favorable. It would go easy going ontop of that 72000 flat rate fee for all 9 units to start with. They would only dig one hole in the yard for the meter. Open cut would be more expensive.

If you have an existing meter, you could use what you've got if its big enough for the volume of 9 units or get an engineer to determine what upgrades could be needed to just have a master meter pit. Is this where that 100 unit minimum comes in? Anyway, this route you could save your digging to one spot. However though, it would defeat your tidy water billing plan?
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Kim H.
OP
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
I was wrong about Guardian. I must have called another company that wouldn't do less than 100 units. After talking to a sales rep, I was really excited about how in expensively (compared to $8000 per meter) I could do sub metering. Only one catch though...I don't have any common electricity areas to put the reader. @Jeff Greenberg they didn't offer up a solution without electricity but I am going to keep trying. Right now RUBS seems to be my only option.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
@Kim H.

Even if you do not have a house entrance for electricity, you could run an outlet connected to one of the units electrical panel. The remote meter reading units for the water draw very little electricity, you could simply set a rebate line item of 1-3$/month on that units rent to offset the reader.
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Kim H.
OP
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
Great idea @Roy N. I didn't think about that. I think there is another issue also that there is a master shut off and not individual shut offs for the units. I kind of dropped the idea because of electricity but now I am talk with a plumber to see about adding shut off valves. This is kind of a quirky complex so who knows if that's possible but I won't give up yet.
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