With utility rates rising between 8% and 10% per year it’s difficult for property owners to continue absorbing the rising costs of water, electricity, and gas. It can be equally difficult to pass these costs to tenants through higher rents since sustainable rent increases are 3% to 5% in a good market. Rising utility rates force rents to increase to levels that are not competitive, and they are outside of the property owner’s control.
Without AMR submetering, the increased costs created by wasteful tenants are borne equally by those that conserve and those that waste. With AMR submetering, tenants who conserve benefit by having lower costs reflective of their usage.
AMR submetering is the best solution to accurately measure tenants’ consumption, recover the cost of service from tenants, and maintain competitive rents.