What should I do what one water meter?

Question

I have a duplex with only a master water meter. What’s the best strategy (besides switching to sub meter) to take when charging my tenants?

Mike Wood · Answer

@Maurice Stewart In Orleans Parish, it will cost more then $1600 to install a second water meter. The cost is two (2) fold, a) the cost to have the second water meter installed and tapped into the system (the city water group used to do this, but no longer, you'll need a licensed commercial plumbing company for it now) and b) the cost to run new piping from the house to the second meter (must be a licensed plumber). This assumes that your house has two (2) completely different water services inside the house, which is not likely. Based on my new construction projects, this is likely in the $2500 range.

If you dont already have two seperate services inside the house, forget about a second meter. Figure out what the average water bill is for the entire property and include this expense in when you calculate the rent. In New Orleans, one water meter for a duplex is very, very common and in these duplexes, the landlord includes water in the price of the rent.

If you dont already have two seperate services inside the house, forget about a second meter.  Figure out what the average water bill is for the entire property and include this expense in when you calculate the rent.  In New Orleans, one water meter for a duplex is very, very common and in these duplexes, the landlord includes water in the price of the rent.

Maurice Stewart · Answer

@Mike Wood thank you. I needed to hear this.

Maurice Stewart · Answer

@Anthony R. will do. Thank you

Anthony R. · Answer

I would check the laws in your area before splitting out water bills. In my area we're not legally allowed to split a bill if it's not sub-metered.

Maurice Stewart · Answer

@Marc Winter

@Aaron H.

@Andrew Millard

Thank you for the advice. I honestly don’t know the price for sub meter in New Orleans, but I’ll look into it. This is my first rental property and I wanted to know was sub meter worth paying for. $1600 isn’t that bad compared to losing good tenants. Plus the house don’t set on a slab and the pipes or easy to get to. Maybe that serves as a discount.

Andrew Millard · Answer

@Maurice Stewart

I have split water meters at the main twice. Works nice, however had to buy new softener for second unit and pay for the plumbing work. All in $1600.

I have another place that has just one water meter and I pay it “included in rent” it sucks because people don’t really see the included in rent as a savings. It has that and one boiler for heat. So heat and water are included in rent. I figure that’s worth about $125 a month to each unit but the rents don’t always reflect it. But the place cash flows good so it’s not a huge deal. I think just paying it and including in rent or tacking on $30-50 a month as a separate flat water service charge would be the best if you can’t easily separate. One meter will cost less per month than two anyway

Aaron H. · Answer

You wouldn't know - as Marc says, it can cause infighting. It just requires slightly more work on your part to submeter than the other route.

There are also some new companies with fancy wireless submetering tech that you can attach e.g. to each water fixture in the house that are supposed to let you submeter without actually redoing the plumbing or installing a second meter. I've never used them, but I've heard good things.

Marc Winter · Answer

@Maurice Stewart,

There are only 2 ways to have tenants pay their fair share of the water:

1.  Sub meter.  Then you must read the meter each month and bill the tenants accordingly, or

2.  New water main/meter.  Contract with a licensed plumber to install and properly hook up to the utility provider's main.  Then have a separate meter installed, and make sure all the plumbing lines are separate, not 'co-mingled'.

If you take the average bill and split it in half, you will be shooting off your own big toe--no tenant will take that lying down.  All you will hear is "That's NOT FAIR! They use way more water than we do!  Why should we split the bill?"

Maurice Stewart · Answer

@Aaron H. how would I know who left the faucet on 24/7? Would the water bill breakdown separate usage for each unit per month?

Aaron H. · Answer

You can either bill them for actual use (half each), or you can figure out the average bill, split it in two, and tack it on to the rent as a fixed charge. The latter is probably simpler, but doesn't account for a month where, say, somebody left a faucet on 24/7.

What should I do what one water meter?

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