Hi, I'm looking into the sub metering company advice for water, sewage & trash. Looks like going through city of mesa route - is a expensive? Is it a good idea? Please share your experience, company name and the cost to me (owner) if possible?
Rental Property Investor · Mesa, AZ · Member since 2019 · 138 posts · 144 votes
6y
I can tell you Mesa has one of the most, if not the most, expensive water and trash utility costs of all the Phoenix metro cities. If you are paying for this and charging your tennants a flat rate, it could really eat into your profits. Especially, if these tennants have teenagers that take 45 minute showers, etc. If you plan on holding this long term, it probably makes sense even if it is expensive up front.
They do an adequate job for the cost and this end of the market. Some buildings lend themselves to submetering better than others, if its single level and easy to find the supply line then it may make a lot of sense...
Caution, sub metering does not relieve the owner of any liability to the provider (The City in most cases)). Also sub metering requires tenants to usually place a deposit with the sub metering company which may cost you potential tenants.
Investor · Waconia, MN · Member since 2014 · 238 posts · 104 votes
6y
@Vibhu Arya, the costs will vary pretty widely depending on the layout of the property and if the plumbing is separated to each unit or not. Then it comes down to what features are you, as the landlord, looking for. Do you want to go to the property and get a meter reading each month and calculate the bill manually, pay someone else to do that or do you want it completely automated? Do you want a local company to do the submetering or can they be located anywhere?