Managing water utility expenses in retail commercial properties can be challenging, but employing the right methods can lead to fairer and more accurate allocation of utility expenses for tenants. This guide explores the options available for water submetering and estimated utility billing, helping property managers make informed decisions.
The Benefits of Water Submetering
Water submetering is widely regarded as the fairest method for allocating water utility expenses among tenants. By installing submeters, property managers can measure each tenant’s actual water consumption, leading to accurate billing based on usage. This not only ensures fairness but also encourages tenants to be more mindful of their water usage, potentially leading to overall water conservation.
The Case for Estimated Utility Billing
While water submetering offers precision, it may not always be the most cost-effective solution, especially for properties with many retail tenants where only some are significant water users. Estimated billing can serve as a viable alternative. By working with a partner with 25 years of billing history for retail properties, property managers can take advantage of accurate water consumption models, enabling fair and reasonable allocation of water expenses without the need for costly submeter installations.
The Hybrid Approach: Combining Submetering and Estimated Billing
In some cases, a hybrid approach may be the best solution. This method involves installing submeters for retail tenants that are larger water consumers while leveraging estimated billing for tenants with typically lower usage. By focusing metering equipment on high-usage tenants, property managers can control costs while still benefiting from the accuracy of submeters for the most significant consumers. Meanwhile, the remaining tenants can be billed based on well-established consumption models, striking a balance between cost and accuracy.
Making the Right Choice for Your Property's Utility Submetering
When deciding between submetering, estimated billing, or a hybrid approach, property managers should consider factors such as the number of tenants, their water consumption patterns, and the available budget for installing metering equipment. By carefully evaluating these factors, property managers can choose the method that best suits their property’s needs, ensuring fair and efficient water utility expense allocation.
