There is an old adage that simply states “Water is free.” Often times, tenants of multi-unit real estate complexes take that adage to a whole new level. These tenants are often charged a flat fee for their monthly water usage. Because they aren’t monetarily penalized for excessive usage, they tend to be less than cautious with water, and their usage becomes profuse and almost irresponsible. The intent here is not to disparage these tenants as they are likely guilty of nothing more than holding true to their human nature. After all, who among us hasn’t taken an extra long shower or two when staying in a hotel simply because we can? The fact of the matter is there is more that all of us can do to be conservation minded when it comes to the essential resource of water.
Perhaps Benjamin Franklin said it best when he said, “When the well’s dry, we know the worth of water.” Now the suggestion here isn’t to shut off the tenants’ water completely but rather to utilize advances in technology to encourage them to reduce their water consumption.
Submetering of water has been proven to accomplish this. The submeters provide real time data that tracks the water usage of each individual unit in the complex. This data is then used to bill each tenant individually for the amount of water that is actually used. Because the tenants are now being charged for their actual usage instead of just a flat fee, they have financial motivation to be much more mindful of how much water they actually use. Studies have shown that when submetering technology is installed in a multi-unit complex, overall water usage in the complex goes down on average between 15-30%.
This reduction in overall water usage translates directly into cost savings and additional profits for the owner of the property. Not only does the owner’s water expense go down, but they also have the opportunity to set up water usage charges in a way that brings in more money from the tenants. They can even set up a tiered billing system where tenants’ costs go up exponentially if they cross certain usage thresholds.
The benefits of submetering are not only reaped by the owner. Tenants who use less water will also experience cost savings as they are only billed for the amount they consume. The community as a whole benefits as well because water is conserved and can be used in other areas or held in reserve for a less than rainy day. Water conservation is never a bad thing, because after all, we know the truth is that water is not free.