Water Submetering Payback Calculator

Submetering transfers water cost to tenants, eliminates RUBS disputes, creates conservation incentive.

Units

Install / unit

Current water cost / unit / mo

Conservation savings %

Service fee / unit / mo

Payback months

4.4

Annual landlord savings

$184,050

Total capex

$67,500

How the math works

Annual savings = units × (transferred cost + conservation savings) × 12.

150 × $450 = $67.5k capex. Full water transfer + 25% conservation savings = meaningful $180k+/yr.

How to Use

Enter units.
Enter install cost per unit.
Enter current landlord-paid water / unit / mo.
Enter % savings from tenant conservation.
Enter reading/billing service fee.
Read payback and annual savings.

Frequently Asked Questions

Submetering vs RUBS?

Submetering: each unit has individual meter, tenant pays actual usage. Accurate, fair, conservation incentive. RUBS (Ratio Utility Billing System): master meter bill divided by unit count or occupancy factor. No conservation incentive, tenants feel unfairly charged. Submetering legal: legal in most states; requires tenant notification. Cost: $300-800/unit install, $2-8/month reading fee per unit.

Savings from submetering?

Tenant behavioral change: 15-30% water reduction when paying directly. Landlord no longer absorbs usage overages. Typical savings to landlord: 20-35% of current water+sewer bill. On $800-1,500/unit/year water+sewer spend: $160-525/unit/year savings to landlord + tenant also saves 10-20% from conservation. Win-win.

Tenant perspective?

Tenant previously: rent includes water (effective water cost $40-100/mo built into rent). Post-submetering: rent may decrease 0-40% of water cost, tenant pays separate bill (often $20-70/mo typical). Tenant often pays less total after conservation behavior. Transparency: tenants feel fairer. Lease terms: submetering typically tied to new leases or renewal (can't impose on existing lease).

Hardware options?

Sub-metering system: $300-800/unit install incl labor, plumbing mod, meter, radio read transmitter. Major vendors: Amcrest, Cityanchor, LeakSmart, Zenner, Conservation, SmartEnergy. Radio-read: no manual reading, data transmitted automatically. Billing software: PM (Entrata, RealPage) integrated. Older pulse-output meters: manual monthly reading, cheaper but labor-intensive.