What’s the Difference Between Metering and Submetering?
October 8th, 2025If you own or manage a multifamily property, you’ve probably heard the terms “metering” and “submetering” when it comes to utilities. But what’s the difference between the two? And why should you care what your property has? We’re breaking down the key differences and why submetering could be the best option for your property:
What is Master Metering?
With master metering, there is just one, main meter that tracks how much water, electricity, or gas the entire building uses. The utility company will send you, the property manager or owner, one big bill to divide up to your tenants.
Most of the time, you’d split the cost depending on the size of the unit or make it easy and bill each tenant evenly. While this may seem simple, it’s not always fair. Some tenants might use a little water or energy, but they’ll still end up paying the same amount as a tenant who uses significantly more.
What is Submetering?
While all submetering is metering, not all metering is submetering. Submetering adds a meter to each unit so instead of one master meter for the whole building, each tenant is tracked and billed for the exact amount of water, electricity, or gas utility they use.
With submetering, tenants only pay for what they use, just like if they lived in a single-family home. This encourages tenants to save on their utility usage and accurate billing. It’s a win-win for both property owners and residents.
The Difference Between Utility Metering and Submetering
The main difference between metering and submetering is in how the utility usage is measured and billed:
- Main Metering has one meter for the entire building, dividing costs among all tenants.
- Submetering has individual meters for each unit, billing each tenant based on their actual usage.
While this might seem like a small change, it can make a big difference in how much utilities cost for both you and your tenants.
The Benefits of Submetering
Submetering benefits both the tenants and the multifamily property owners and managers because it provides:
- Fair Billing: Tenants pay for what they use, making the billing process more transparent, and it keeps the tenants happier, overall reducing the number of complaints.
- Lower Utility Costs: When tenants are responsible for their own usage, they’re more likely to save on their energy and water consumption, which can lower utility bills for everyone.
- Spot Problems Early: Because you can track usage more closely, submetering helps you detect in real-time any leaks or inefficiencies in the system. This can save you money in maintenance and repair costs.
- Lower Occupancy Rates: Prospective tenants like the idea of only paying for what they use, making your property more attractive and ultimately having lower occupancy rates.
How to Get Started with Submetering
Interested in submetering? Flowrite Metering can help! We specialize in submetering installation, maintenance, and retrofitting water meters, electric meters, and gas meters in multifamily properties nationwide. Our team will work with you to find the best solution for your property, providing a seamless installation and ongoing support.
Contact us today to learn how submetering can benefit your property! Whether you’re ready to get started or just want more info, we’re here to help.