Utility submetering is often considered to be the superior method for tenant billing distribution. There are many benefits to the use of this method. Additionally, tenant billing can take quite a bit of time to manage manually. Utility submetering helps to automate this process, ensuring that your utility submetering process goes as smoothly and efficiently as possible. This reduces the amount of time you spend worrying about these processes and also eliminates late fees from occurring. Utility submetering also helps prevent errors from occurring with the billing process.
How Utility Submetering Works
Utility submetering makes use of metering equipment. This equipment is installed on the pipes, allowing them to monitor the actual consumption of energy. This helps to eliminate any one having to pay for another individual failing to follow energy conservation techniques. Utility submetering ensures that each tenant will only have to pay for their own energy use.
The Benefits of Utility Submetering
There are many benefits to the use of utility submetering. It encourages tenants to practice energy conservation techniques. Automating the utility billing process helps to eliminate late fees, as well as reduces the amount of time that you have to spend on overseeing tenant billing processes. Utility submetering helps to increase overall tenant satisfaction. It allows tenants to feel like they have more control over their own expenses. Utility submetering creates a situation where everyone wins. The landlord saves money on late fees and utility expenses. Tenants have control over how much they are spending on utilities and are able to limit their utility use, thereby reducing their expenses. Additionally, utility submetering is good for the environment.
Utility Submetering vs Ratio Utility Billing
Ratio utility billing is another alternative to tenant billing processes. It distributes the utilities into percentages that are determined through multiple factors. These factors are usually the number of rooms in a unit, the square footage of a unit, or the number of occupants that reside in a unit. Ratio utility billing has many of the same benefits as utility submetering. It automates the process and encourages tenants to conserve energy. Additionally, ratio utility billing doesn’t require the use of specialized equipment. However, there are some cons to the use of ratio utility billing, as well.
Ratio utility billing may not always distribute the energy consumption fairly, because it doesn’t directly measure the amount of energy each tenant uses. For example, a family could carefully monitor their water use, but would end up having to pay more of the water bill than a unit with fewer tenants. Utility submetering specifically monitors the actual energy use, which ensures that each tenant is only financially responsible for their own use.
Utility submetering is one of the best ways to distribute utility expenses. Here at Vitality, we offer affordable options for implementing utility submetering. Rather than requiring a large initial investment, we are able to install the necessary equipment for an affordable monthly payment. To learn more about our utility submetering services, contact us at Vitality today!