Should I do sub-meter in Low income units

Question

Wanted to know, if there is any benefit by adding cost of installing sub-meters in low income units. Yearly water bill is $9k to $10k. Or should i just start charging tenants part of water consumption? also can i start charging in the middle of the lease agreement, or do I've to wait till lease expire.

Thanks!

Sal Zafar · Answer

Thanks for all the feedback. Most of them are on month-to-month, so I guess i'll increase the rent, one unit at a time.

Gino Barbaro · Answer

@Sal Zafar

Look into a company called NWP. The system is called RUBS (ratio utility billing).  They can do the billing for you and will charge the tenants for the bills.  You have to wait until the current lease is up and include it into the new lease.  You will only be able to do it if the rest of your market is billing back tenants for water usage.

If they aren't, then the best bet is to raise the rent.

Gino

Jamal White · Answer

They should pay for it themselves. Most electric companies and water companies have programs for low income people to  get them at a lower rate.

Joey Jojo · Answer

If you install submeters, the water and sewer charges to residents from metered usage goes into the utility allowance.  You can use the unit's submetered costs to calculate the utility allowance amounts more accurately (compared to modeling or guessing) for the next year.  Can also pass through admin costs of billing (subject to local restrictions).

Mike R. · Answer

Easier to just increase rent

Do it at lease renewal