5 Water Billing Facts Multifamily Property Owners Should Know

Water billing has a direct impact on your bottom line — especially as water rates continue to rise. For multifamily property owners including water utilities in rent or charging a flat fee, you could be missing out on full cost recovery. Luckily, there’s another way.

In this blog, we cover five things you should know about selecting, implementing, and managing a water utility billing system to improve NOI and tenant satisfaction.

5 Water Billing Facts Multifamily Property Owners Should Know

#1: You Have More Water Billing Method Options

Submetering and Ratio Utility Billing System (RUBS) are two common water billing allocation methods that are a more equitable alternative to including water utilities in rent, charging a flat fee, or splitting the master meter.

Submetering: Allows property owners to bill back residents for their water usage. In a submeter setup, each unit in a multifamily property has its own water submeter installed, which measures and records water usage for that unit. Property owners can then generate a fair and accurate utility bill each month based on that usage.

RUBS: Calculates water bills based on industry-accepted formulas that take into consideration factors like unit size, occupancy, layout, amenities, and more to determine a fair water bill allocation each billing period.

READ MORE: How Submetering Works

#2: Multifamily Water Billing Is Not One-Size-Fits-All

The right approach for your property depends on a variety of factors, including your property’s age, plumbing infrastructure, budget, and the rental market surrounding your property.

Here is an outline of the factors to keep in mind when choosing between water submetering or RUBS.

• Plumbing Infrastructure: Older plumbing systems may not support submeters easily or at all, making RUBS a more practical choice.
• Upfront Costs vs. Savings: Submetering requires investment in submetering hardware and the cost to install it. This up-front cost may deter some property owners.
• Rental Market: Consider how other multifamily properties handle water billing, and if your tenants and prospective tenants can bear the cost of water billing.
• Strategic Goals: Submetering is the best way to boost NOI and property value in the long term, while RUBS provides a quicker, lower-cost path to cost recovery.

READ MORE: Water Submetering vs. RUBS

#3: Water Billing Affects Resident Behavior & Satisfaction

When tenants are billed for their water usage, they become more aware of their water consumption. When tenants are aware of and billed for their water usage, they use less water and report leaks faster.

Transparent water billing also helps tenants understand exactly what they are paying for, increasing their sense of control and accountability.

Flat-rate water billing has the potential to create resentment among residents using less water who feel as though they are subsidizing those who use more. Individualized billing feels fairer and builds trust, especially when paired with itemized statements and clear communications.

While nobody likes to pay a bill, the right water billing experience can improve the overall experience for your tenants.

READ MORE: Utility Billing Best Practices to Increase Cost Recovery

#4: There Are State & Local Laws About Water Billing

Before implementing any water billing method in your multifamily property, it’s essential to understand local laws and regulations around multifamily utility billing. Submetering and RUBS are legal in some municipalities. Others allow them with some restrictions or prohibit them entirely.

Failing to comply with local water billing laws can lead to fines, disputes, or even legal action. It’s wise to consult a utility billing expert or attorney familiar with the rules in your area. Staying compliant protects your property from liabilities and fosters trust with your residents.

READ MORE: State Submetering Regulations

#5: Utility Billing Firms Can Help With Implementation

Implementing a water submetering system or RUBS can be complex. Navigating new factors like submetering hardware, installation, bill generation, collections, and local regulations can be difficult for multifamily property owners and their teams. That’s why many multifamily property owners work with a utility billing firm.

The right utility billing company can help you implement a new water billing system from start to finish. They can assess your property’s infrastructure, recommend the most cost-effective water billing approach, and ensure you’re compliant with all applicable laws and regulations. After the new system is implemented, the right provider can also handle the day-to-day tasks like meter reading, bill generation, collections, and customer service questions from tenants.

READ MORE: How to Pick a Utility Billing Company

Conclusion

A different water billing system — namely, RUBS or submetering – can help multifamily property owners improve tenant satisfaction while protecting their bottom line from variable water costs. Now that you know the basics, get in touch with a utility billing provider who can help you get started with confidence.

Ready to start water billing at your multifamily property? Get in touch with Synergy Utility Billing.