San Diego, CA · Member since 2016 · 13 posts · 2 votes
Does anybody have any knowledge of a sub metering company in San Diego? There is one I know of but they charge 150$ monthly which isn't cost effective when the most units I have on one property is four. That would be 150$ per property, that seems way real steep. Thanks
Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
10y
@Gunner Cash I spent a lot of time trying to solve the same problem here too. I'm convinced that, until they make an internet connected submeter (that can simply glob onto a wifi connection) that just publishs usage (and doesn't try to bill people), there will be no cost effective solution for small multis. I'd be crazy stoked if someone could say otherwise!
That said, we've moved to the following:
1. Installed water (and gas and electric, where applicable) sub meters at each unit.
2. Make tenants responsible for actual usage in their leases.
3. Include a monthly estimated usage that they pay with rent each month.
4. "Occasionally" read the meters and resolve any over or under payment on the tenant's next rent payment or move out statement.
It's been working well for us - we get tenants paying the utilities, we don't have any sub metering fees, and almost never have to go there to read meters.
Good luck! Let me know if you figure out something better!
San Diego, CA · Member since 2016 · 13 posts · 2 votes
10y
Thanks Justin what's the cost of a sub meter BTW? I have thought of just doing the RUBS calculation myself as I have just put a new tenant under lease and their new lease says they are responsible for all utilities. An actual sub meter sounds more concrete. Easy to install I would imagine. I will let you know my findings.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
10y
In San Diego water is a scarce and a precious resource.
We have used percentage of water bill for units of 3 or less on a meter (not split evenly but split equitably and agreed to by tenants as part of the lease). For example we have a detached duplex with a 4/2 and a 2/1. The 4/2 pays 60% and the 2/1 pays 40%.
We have 3 units that are on a 8 unit water meter (yes the water meter services units owned by multiple owners). For these units we include the water as part of their rent.
The difference in policy is due to how much of an impact they can make by saving water. On up to 3 units they could make a difference conserving water and encouraging our other tenants to conserve water. On a unit that has 7 additional units and not all are our tenants their conservation efforts could make little impact.
This works for us.
So we do not sub meter our units but maybe in the future things will change and we will need to charge for exact water used.
Thanks Justin what's the cost of a sub meter BTW? I have thought of just doing the RUBS calculation myself as I have just put a new tenant under lease and their new lease says they are responsible for all utilities. An actual sub meter sounds more concrete. Easy to install I would imagine. I will let you know my findings.
We do major rehabs on most properties we purchase, so it's convenient to re-pipe at that point to enable true sub-metering. On our current rehab, the City is actually *requiring* sub-meters for all utilities (which is fine - I'd do it anyways).
The actual cold water sub-meter is cheap - about $100 delivered to you. The cost is in the plumbing, and that's highly dependent on the structure. In our case, we're switching out everything to new PEX, so it's no additional cost to do the sub-meter.
If the tenants are agreeable to a RUBS system, I'd say go for that (similar outcome, less expensive).
Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
6y
It's common practice and I've never heard anyone suggest it's somehow not permitted.
As a practical matter, it's not really perfectly fair, so a tenant could reasonably object to it on fairness grounds. If I were doing it I'd frame it as a choice, ie: pay your utility usage via an $80/m higher rent or pay choose RUBS at am average of $70/m based on what I've historically seen at the property.