Have you heard about the practice of submetering? Do you know what submetering is? If you answered no to either or both of those questions, this article will give you a brief lowdown of what submetering is, and what it is not.
First, a definition: submetering is a system where the cost of utilities is determined by actual utility usage rather than a broad estimate or allotment of what is used. It is most often used in multifamily housing units such as apartment complexes, condominiums, mobile home parks, and military base housing; it also often used in commercial settings such as shopping malls, warehouses, medical clinics, and so forth. Utility usage is calculated via meters that are installed in each residential or commercial unit and the charges are relayed to a central utility company that bills tenants and collects fees.
You may be surprised to learn that utility consumption in venues such as those listed previously is often estimated and not based on actual usage by individual tenants. It is easier for utility companies to estimate charges because calculating individual expenditures takes time and money. This seems unfair but it is commonly practiced throughout the country.
Here is a common scenario: one tenant in an apartment complex conserves utilities but another wastes them like crazy. The former tenant ends up paying for the latter tenants wastefulness in terms of money and environmental impact. Since utilities are derived from natural resources, wasting utilities directly correlates with wasting natural resources. Not everyone cares about the environment but surely everyone cares about spending less and retaining more cash.
If this apartment complex uses submeters, the latter tenant will be solely responsible for paying for his squandering ways and the former tenant will not be financially impacted. This will hopefully make the latter tenant aware of his wasteful ways and he will choose to be more conservative with his utility usage. His rent may not go up the following year because his landlord saves money and time by not having to repair worn-out utility devices. Conclusion: submetering is a good, good thing.
It is possible that an established residential or commercial building cannot employ submeters. This may be due to the fact that they cannot be installed into an older building or the cost to install them is too great. An alternative to submetering is something called a Ratio Utility Billing System, or a RUBS. A RUBS is a estimation of utilities but it differs from other estimation systems in that it calculates utility usage based on the size, type, and occupancy of the residential or commercial space rather than blindly estimating without giving heed to such things. Only a fair RUBS will have a utility company that provides this service by personally assessing the size, type, and occupancy of the building and combining that information with pre-set industry-wide standards that comply with state and local regulations.
There is not doubt about it: submetering saves money for tenants and property owners alike. It conserves natural resources and lessens the burden on the environment. It is progressive and allows residents and employees to feel good about living and working in a green atmosphere. Will everyone care that submetering can help save the planet? Nope. But one thing that all lucid humans have in common is the desire to save money and submetering can help accomplish that.
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