How Sub-Meters in Commercial Properties Save Money & Headaches
Sub-metering is one of the most effective solutions for achieving fair water usage billing and improving water management in multi-unit properties. For landlords, managers, and tenants alike, it ensures everyone pays for exactly what they use no more, no less. In this guide, we’ll explore what sub-metering is, how it has evolved, its many benefits, the technologies behind it, and best practices for successful implementation, finishing with a real-world case study that demonstrates its value.
What is Sub-Metering?
Traditionally, a single water meter is installed at the property entrance of a commercial or residential building. This setup simplifies billing for utilities since only one bill is sent to the property management company. However, it also creates challenges, as all tenants or unit owners share one bill, regardless of individual water usage.
Sub-metering changes that. By installing separate water meters in each unit, every tenant or owner receives a precise reading of their own water consumption. This approach promotes fairness, transparency, and accountability while making it easier for property managers to identify issues like leaks or inefficiencies.
Background: The Evolution of Sub-Metering
For decades, water was often overlooked compared to gas or electricity because it was cheaper and perceived as less critical. In the past, water costs were divided equally among tenants, a system that only worked when everyone used roughly the same amount. As buildings became more diverse—housing everything from restaurants to offices—this approach created inequality. For example, a restaurant’s water use far exceeds that of an accounting firm, yet both could end up paying the same share.
Modern advancements in metering technology have solved these challenges. Today’s meters can measure flows as low as one litre per minute and support automated or remote readings. These innovations eliminate the need for manual data collection and provide real-time visibility into water usage across a property.
Benefits of Sub-Metering
For Property Managers and Landlords
Sub-metering offers powerful tools for cost control and operational efficiency:
- Accurate Billing: Tenants are billed based on their actual water usage, reducing disputes and improving transparency.
- Remote Readings: Smart meters allow for easy, remote data collection—saving time and cutting labour costs.
- Water Loss Management: Comparing main meter readings with total sub-metered data helps identify leaks and losses early.
- Cost Control: Prevent unnecessary fee increases caused by overestimating or evenly distributing water costs.
For Unit Owners and Tenants
Sub-metering also provides tenants with clear incentives to manage consumption responsibly:
- Fair Billing: Everyone pays for what they actually use no more subsidizing heavy users.
- Conservation Incentive: Knowing usage encourages water-saving behaviour and promotes sustainability.
- Direct Cost Savings: Lower water waste translates into real savings on monthly bills.
Key Considerations
While sub-metering provides long-term savings, it’s important to consider short-term factors like installation, maintenance, and temporary disruptions. Installation costs vary based on technology and infrastructure, and water shutoffs of roughly 30 minutes per unit may be required. Routine maintenance, billing administration, and troubleshooting are also part of keeping systems running smoothly.
Modern Sub-Meter Reading Technology
Older wired reading systems were labour-intensive, costly, and prone to tampering. Thankfully, the water meter industry has made significant advancements. RF (radio frequency) transmitters have transformed meter reading, allowing data to be collected from parking lots via unlicensed 910–920 MHz technology or even off-site using cellular connectivity.
The latest generation of sub-metering systems offers intelligent features like leak detection, no-flow alerts, and reverse-flow detection. They also provide hourly data logging, giving property managers actionable insights to troubleshoot unusual consumption patterns or identify inefficient usage based on tenant activity.
Best Practices for a Successful Sub-Metering Project
A successful sub-metering program starts with choosing the right water meter. While online searches will reveal many devices marketed as “smart” or “IoT-based,” not all are designed for accuracy or longevity. Some measure water usage indirectly, which can lead to unreliable data.
For dependable results, we recommend using the same proven meter technologies trusted by public utilities for over a century—positive displacement and ultrasonic meters. Both offer a lifespan of about 20 years. Positive displacement meters are cost-effective and highly reliable, though accuracy may decline slightly over time. Ultrasonic meters, while more expensive, maintain near-perfect accuracy throughout their lifetime.
The choice of reading system also impacts overall project costs. Basic touchpad systems—which require on-site data collection—tend to be the most affordable. On the other end of the spectrum, cellular-based systems allow fully remote data collection but come with higher upfront and operating costs. The right choice depends on your reading frequency, budget, and property layout.
Installation should always be handled by a certified water meter installer or licensed plumber. Authorized distributors, such as Evan Supply Limited, provide complete project support, including coordination with unit owners, scheduling, and on-site installation. Their experience minimizes errors, ensures compliance, and provides peace of mind that the system will perform as intended.
Every commercial property is unique, and the water service layout within each unit can differ greatly. If you’re unsure about the best approach, consult an industry professional before starting your project. Consultations are typically low-cost—or even free—and can help you design a system tailored to your needs.
Practical Case Study
Evan Supply Limited recently assisted a 31-unit retail and office condominium complex with a sub-metering project that delivered both financial and operational benefits. The property’s tenants included a wide mix of businesses—ranging from a grocery store and restaurants to a bookstore, dentist, and several hair salons.
Before sub-metering, the property’s municipal water bill was divided evenly among tenants. This meant that water-intensive businesses, like salons and restaurants, paid the same as low-usage tenants, such as the bookstore. The result was frustration, inequity, and wasted resources.
After installing sub-meters in each unit, billing became fair and transparent. Each tenant was responsible for their own usage, eliminating disputes and encouraging conservation. The property management team also gained visibility into total water consumption, allowing them to quickly identify leaks and reduce water loss across the site. Check out the full case study here.
Get Started Today
If you’re managing a commercial or multi-unit property, sub-metering can help you achieve accurate billing, lower costs, and simpler water management. Evan Supply Limited specializes in providing complete sub-metering solutions—from meter selection and installation to ongoing system support.
Get in touch with our team today to learn how you can streamline billing, conserve water, and ensure fairness across every unit in your property.
