question about submetering

[Jacob Straussen]

I currently have a duplex in Oahu where I rent out the other unit.  When I move, the plan is to rent out both units.  Currently, there is only one meter that tracks the electricity for the entire duplex.  What would be the best way to separate usage? 

Get an electrician to turn my 1 meter to 2 separate meters?  (Hawaiian electric says they can track two separate meters)

Submeter?  (Hawaiian electric will not track the submeter)

Use an Emporium and just clip the panels and track myself?  (I'm not even sure about the laws and regulations.)

Any help appreciated!

[Zach F.]

In my experience, it's typically not worth it.  Typically, at least in the Cincinnati market, small multi family rental homes were built with only one meter.  It's expensive to sub meter, for starters.

Secondly, let's theoretically say that you did complete the sub meter job.  You naturally advertise at the same FOR RENT asking price as you did, before the tenant now has to pay for their own electricity.

After they view the place and subsequently waste your time now, they realize the same sort of places next door to yours or within the area, DONT make the tenants pay for electricity.  So they go sign a lease next door.

Now you could be in situation where you have to actually lower your rent to come to market with the rest of the competition.

This is how I would see it playing out in the Cincinnati and Dayton markets where we do property management.  Your market could be totally different, but this is definitely something you want to think about.