City Metering vs. Submetering: Understanding the Key Differences

Tracking your water usage is a crucial part of owning property, whether that is a commercial building with multiple tenants or an industrial one with machines to cool. To stay on top of costs as well as the overall health of your investment, you need to know how much water is being used at any given time and where it is going. Tracking water usage is done with two primary types of meters, city water meters and submeters.

It can be easy to confuse the two, especially when there are both on the same property and they basically perform the same action, measuring water usage. But there are several key differences that can confuse even some professionals. Let’s look at both types and explore their differences, and why it can be important to have both on your property.

City Meters

City meters, also called “utility meters” or “main meters”, are water meters installed and maintained by a city or municipality. Unlike submeters, city meters measure the overall total water consumption of a property or premises. So, if there is one installed on an apartment building, the meter will show the total water usage for a specific month of the entire building.

City meters have one fixed location, typically at the point where the property’s water line connects with the city or municipal water supply. There will be one for the entire property, making them easy for the city workers to find and read.

Compared to submeters, billing for a city meter is relatively simple. Since it measures the overall consumption of water rather than individual usage, it can be done with a flat-rate billing method, where the city sends the property owner or manager a flat-rate bill that needs paid. However, this can lead to frustration with tenants as there is less transparency of individual water usage and these methods are prone to inequities in cost allocation. Tenant A might be someone who enjoys hour-long showers while flushing all the toilets in their apartment and running every tap on full blast, while Tenant B counts every drip as valuable as hundred-dollar bills. With only a city meter to judge the cost, Tenant B would pay the same as Tenant A, even though they used far less water.

Submeters

Submeters are additional water meters installed on an individual water line on a property or premises. This allows the property owner or manager to track and measure water usage of specific tenants, units, or areas within a larger property. For example, an apartment building manager could have them installed to each apartment unit so the water usage of that unit can be read, separate from the whole.

This allows for more accurate billing procedures, as the billing is based on actual usage and not just a fraction of the whole, like with city meter billing. Tenant A, with the wasteful water practices, will see that reflected in their bill each month, while Tenant B will see their savings pile up as they continue to count water drops from the faucet.

Because the billing system is more precise, tenants are incentivized to be more frugal with their water usage, and property owners are provided better cost recovery. As Tenant A becomes more aware of how much money they are wasting, they will cut back on their habits, which is good for their wallets as well as for the environment. This precision also helps prevent overcharging or undercharging, making it easier for property owners to recover the full cost of utilities.

This also helps property owners or managers keep unnecessary complaints from piling up. As the allocation of bills are based on individual usage and not the whole, tenants will feel there is more transparency in billing practices and that the cost allocation is fairer.

Differences and Implications

Several differences have already been listed, we will review those below as well as go over others not mentioned.

Ownership: City meters are owned by and the responsibility of the city or municipality that installed them, while submeters are typically owned by the property manager or owner.
Billing: City meters are billed based on overall water usage of a property, submeters are individualized and billed accordingly.
Amount on property: Typically, there is a single city meter for an entire property or premises, whereas there can be as many submeters as units or tenants. However, it is not uncommon for large buildings to have multiple city meters.
Location: City meters are usually outside of the building they are allocated to, or below grade in basements. Submeters are within the specific area they intend to measure.
Accuracy: City meters are accurate to the overall water consumption of a property, submeters are measuring individual information and therefore accurate to the tenant or unit. This means the bills for tenants are more precise for submeters.

Submeters are typically owned by the property owner or manager, providing them with full transparency over utility usage. While there are initial installation costs and ongoing maintenance, many consider this a worthwhile long-term investment. The ability to accurately track and manage utility consumption can lead to significant savings, increased efficiency, and a more sustainable property, making the overall benefits far exceed the costs.