Converting multifamily property to sub-metering?

[Adam Juodis]

I've been searching for a property to invest in for a while now, and I've come across a handful of properties which would have been good deals if the tenant would cover their utilities - that's been the deal breaker. I was thinking if I could convert to a sub-meter system, and have the tenant pay the utilities(Water, Gas, Electric), it could give me the desired cash flow number I am searching for.

I'm not familiar very much with converting to a sub-metering system. I imagine there is a respectable up-front cost, but that surely gives you a good ROI over time. For those who have converted to sub-meters, how much did it cost you? When sub-metering electricity, gas, and water- or planning to, what should I look out for? I know not all multi families have the infrastructure for the conversion. Does converting to sub-meters also require any permits or licences?