6 Benefits of Water Sub Metering for Real Estate Investors and Landlords

While real estate investing can offer great returns through rental income and property appreciation, it also comes with challenges. Of course, being unable to increase rents in line with inflation and the recent interest rate rises has squeezed margins for real estate investors. 

Real estate investors can find themselves facing various other challenges, from tenant issues to maintenance concerns. However, one problem that needs to be addressed is high water bills. 

Depending on the municipality, water has seen yearly increases as high as 12%. This, coupled with increased focus and pressure on conservation, will likely grow usage rates faster than a water bill's fixed element. 

Water sub-metering can help solve this issue by accurately tracking water usage and billing tenants accordingly. Water sub-metering has several benefits for real estate investors, and how it can save you money in the long run.

  • Savings on Water Bills
  • Water sub-metering is a system that measures and separates water usage by each unit in the building. High water bills can be a huge expense for real estate investors, especially those owning multi-unit properties. With water sub-metering, each tenant is billed based on their usage. This encourages responsible water usage among residents and reduces overall costs for the property owner. The landlord has more control over the water consumption of tenants, which can help reduce overuse.

  • Leaks and Damages
  • Improvements in technology and connectivity mean that water sub-meters can alert you or tenants to potential leaks or damages. Even something as simple as a jammed toilet flapper can produce gallons of wasted and charged water. Landlords can control and monitor water usage and pinpoint problem areas.

  • Accurate Billing
  • With traditional billing methods for water, real estate investors often find that they are paying more than they should due to inaccurate measurements or estimations. Water sub-metering ensures accurate billing for each tenant, which will reflect in the property's water usage reports. This also eliminates any disputes between tenants and property owners about who is responsible for higher water bills. With accurate billing, landlords can streamline their accounting processes and have more time to focus on other aspects of property management.

  • Helps Landlords Budget for Utility Expenses
  • Water sub-metering can help landlords budget for water costs. Since the landlord can base future expenses on current usage, the landlord is more likely to keep the water bill under control and budget accordingly. Additionally, since landlords can hold tenants accountable for their usage, they don’t face the dilemma of being unable to adjust rental rates to offset skyrocketing water bills.

  • Increase Property Value
  • By implementing water sub-metering, investors can differentiate their property from other properties in the market. Being environmentally mindful and promoting responsible water usage can be a selling point for potential renters or buyers. By improving the property's overall efficiency to reduce water costs, it can also increase the overall value of the property.

  • Build a Better Reputation
  • Building a good reputation as a responsible property owner can make all the difference as the world moves towards a more sustainable future. Tenants and potential buyers are more likely to consider properties prioritizing sustainability and environmental consciousness. With water sub-metering as a key part of your property's sustainability initiatives, you can achieve this reputation and attract better tenants and future buyers.

    The savings and increased revenues can be significant for landlords with multiple properties or multi-family buildings. Water sub-metering is a worthy investment for property owners who want to increase their rental income cost-effectively. It has multiple benefits, such as increasing rental income, saving on water bills, encouraging water conservation, and helping landlords budget utility expenses. 

    All these positive outcomes improve long-term financial performance and total investment returns. So, don't wait any longer; consider implementing water sub-metering in your real estate investment today with Water Bill Solutions.

    Let us walk you through a water sub-metering dashboard so you can understand the potential savings for your portfolio and see if this solution makes sense to you. 

    Book your complimentary dashboard walk-through - click here to book your call

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