Submetering 2 small MF properties

[Michael Beeman]

Hello BP,

I have a large older home that was a nice value purchase andI am putting some money into it and creating a nice 3-plex. I also have a 6 unit Apartment building. Neither of these is sub-metered for water or Electric or Gas.

1. Who is the most efficient (considering quality/cost) company to work with for submetering/billing these 9 units out? I am in downstate Illinois.

2. I have contacted Guardian, but  I received no response. Sounds like a lot of work to submeter them myself. 

[Stanley Parsley]

sub metering

I'm not sure if it pays off but it makes it nice if the utilities are occupied paid that way each unit is metered

I have a little duplex I'm going to submeter but it is a lot of work and permits are crazy

I'm doing it for the resale value not the utilities because the tenant is paying those in there names

water and gas are usually easiest if the units are piped individually but the power can be a nightmare depending how they ran the feeds to the apartments

enjoy

[Michael Beeman]

@Stanley Parsley  

On the electrical side, it's not bad at all. Only because the electric running to those new apartment locations, all runs off of their own breakers. So, putting them on their own box, wouldn't be hard. I just don't know what company to use. etc?

[Jeff Kehl]

@Michael Beeman sub-metering is a much more complex topic than the 'gurus' in books lead you to believe. 

Starting off you have to make sure the piping or wiring physically allows it and guess what that is all behind walls/floors/ceilings so even if it is possible you may not be able to tell.

Then let's say it is fairly easily identifiable like your example of electric circuits. You have to have a device that someone actually manufactures that can be installed at the place the use diverts. That device has to be allowed by building codes and tons of other regulation...

Electricity is fairly hard to meter and is highly regulated. I am a consultant involved in billing for electricity and am not aware of a device that could be mounted in an electrical panel that would measure electrical use for that individual circuit. 

Look at the electric meter on the side of your house, how would that fit in your electric panel? Technologically I think someone could make such a device but no one is close to that in my experience. If you find one let's start a business together :)

Gas and Water are a different story there are actually devices available on the market. Water is easiest because you're just measuring a fluid.

But let me give you just two additional issues with water. A) It might be illegal. You need to research local laws around measuring it and splitting it. B) It is logistically hard. You not only have to measure it you have to transmit it (ok wifi is helping) to an employee or other agent who will appropriately and legally charge the tenant for the water. 

How much do you charge a tenant for water? See the point above about researching local laws and regulations. This gets complex very fast especially if you're in California, New York or ILLINOIS.

Also, final point, many tenants will move if you start charging them for utilities particularly if competitors do not. It takes a long time of water savings to absorb a $3k unit turn.

Don't get me wrong, there are some very effective value-add strategies around sub-metering utilities. Feel free to PM me and I'm happy to talk ideas for your specific property with you.

I just don't like it when I hear 'gurus', 'asset managers' or other people with no clue talk about how easy it is to sub-meter utilities making property owners like you think it is something you are crazy not to do.

[Michael Beeman]

@Jeff Kehl

I actually got it figured out. But, thank you for your concerns. 

[J. Lee]

Michael- looking into submetering. You mind sharing who you used to assist with process? I am in Central Illinois as well. Thanks