Submetering water for multifamilies in Las Vegas?

Question

It sounds like in general most owners are paying water&sewer for their multi units in Las Vegas, which ends up being quite a large cash flow drain.

From reading older threads, it sounds like even if I were to submeter, if most of the other competing units are not charging for water, I would potentially have higher vacancy issues as tenants would simply go elsewhere.

I'm sure this is a common issue that other owners have thought about, does anyone have any guidance/suggestions?

Pat L. · Answer

On duplexes we can put in a second meter. The city charges us $283 for the meter & billing transmitter & we do the hookups.
BUT
landlord is still on the hook for any & all arrears.

Page Huyette · Answer

I got a quote earlier this year for about about $700 per unit installed from this vendor:

http://www.submeterstore.com/

Billing service was quoted at $50/month which seemed high, but I've not looked into it more than this.

Arnie Guida · Answer

I would do it in a heartbeat, we are getting killed by the water bill in our four family. I was told years ago that submetering wasn't allowed in Milwaukee...maybe I should check into it again.

John Sheedy · Answer

Phillip Dwyer - usually around $400 per unit for water assuming you can do it on the outside of a building.

Phillip Dwyer · Answer

Does anyone know the cost involved with sub metering?

John Sheedy · Answer

Technically if you submeter you could lower your rents if the tenants are paying for water so assuming your comps are similar now you'd be "lower" than other properties where they build the water costs into the rent.

Submetering is the future and IMO much more preferable than RUBS especially from the tenant side.  RUBS just (no pun intended here) can often rub some people the wrong way.  Submetering allows people can see a correlation on their bills when they change their habits.