Just got our first water bill... so let's talk about Sub-Metering

[Lucas Bennett]

Dear BP Family, 

I know this isn't the most flashy of topics, but here is the situation I am in: 

My company recently purchased a 7-unit property in Portland, OR (Keyword alert: 'Portland' is being discussed on biggerpockets  :)  ), and due to the fact that the building is older, the water utility is master-metered. Anyone familiar with Portland knows that the water/sewer system is a mess, and we just received our first water/sewer bill, which was quite large, to say the least. 

I recently found out about sub-metering, and I would like to ask the investors/landlords on the site a couple questions.

1. I understand that we will still receive/pay the master-metered water bill from the city, and that the sub-metering company will bill the units directly and mail us the money (sans their cut), BUT how do you enforce the new water utility bill with the individual tenants. If one unit doesn't pay the bill we can't shut the water off JUST to their unit, obviously. Should we write a new lease contract, including the sub-metered water utility, so if they don't pay it then we can start the eviction process, like it works with rent? Have you all had good success with this process? Are there better options?

2. Anyone have any good suggestions for Sub-metering companies? I spoke at length with a company called Guardian Water & Power, and they seemed very legitimate with what I would consider decent prices, but I'd love to hear who you all are using. 

Also, if anyone on the site has other alternatives to sub-metering I would love to hear them!  

Thank you all in advance

Lucas