The Business Case for Submeter Upkeep

Submeter maintenance means potentially avoiding unnecessary expenses and regulatory headaches. In Massachusetts, landlords must “retain an affirmative obligation” to maintain submeters and any other water conservation devices. They must also respond in a timely manner if a resident complains about an overcharge, and the resident shall have “all rights and remedies provided under law for such overcharges or such violations.” The same goes for Texas, where the rental property owner is responsible for installing, maintaining and testing all submeters or point-of-use submeters. If a resident asks in writing for a meter test, the owner must prove the meter was calibrated or tested and shown to be accurate within the preceding 24 months. In both states, the onus is clearly on the property owner or manager to ensure that submeters for water, electricity, and gas are working accurately and recording the correct usage. Massachusetts and Texas are just two of 22 U.S. markets that have protocols and regulations that require apartments to maintain good meter health long after the installation is complete. Submeters must be periodically inspected for compliance and verified that they are in good working order. If they are not and a resident complains about an unusually high bill or problem, regulatory officials are likely to get involved and landlords could be held responsible for overcharges and repairs, even fines. Some markets permit the landlord to estimate usage for only one month. After that, charges must tie to exact meter readings. The growing use of submeters in multifamily and other housing and commercial spaces is a result of the desire of property owners to encourage conservation and mandates from city and state agencies to require monitoring of resident usage for water, electricity, and gas. In the past, landlords could estimate usage and pass along costs to the resident. Now with a greater focus on energy conservation, some markets ar...