Master Metering vs Submetering
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
One bill for the whole property, or a bill per unit. Here is how they actually differ.
What is the difference between master metering and submetering?
With master metering, one meter measures the entire property or building, and the owner pays that single bill no matter who used what. There is no way to tell heavy users from light ones, so the cost gets spread or absorbed. Submetering adds a meter on each unit, between the master meter and the apartment, so every resident pays for their own use. The practical difference is who pays and how fairly. Master metering keeps the bill on your books and gives residents no reason to conserve. Submetering moves real cost to residents, which usually cuts water use 15 to 30 percent and pays back in 12 to 18 months. The total billed to residents never exceeds your master-meter cost, so you recover expense without overcharging.
Who pays and who conserves
Under a master meter the owner carries the whole utility cost, and residents have no reason to think about use because their share does not change. Submetering flips that. Each unit's bill reflects its own reading, so residents who run less pay less. That single change is what drives the 15 to 30 percent drop in water use that most properties see.
How each setup is built
In a master-metered property, the utility installs one meter per building or per property, and that meter records the combined usage of every resident behind it. The owner gets one bill for all of it. Submeters are added between the master meter and the individual units, one per unit, measuring water, gas, or electric. The utility relationship does not change: the property still pays the master bill, but now there is a reading that says exactly which unit used what, so the cost can be billed back accurately.
Master metering vs submetering at a glance
- Master metering: one bill, owner absorbs everything, no per-unit fairness, no conservation pressure.
- Submetering: a meter per unit, residents pay actual use, leaks and heavy users get caught, cost shifts off your books.
- Submetering has an upfront install cost but typically pays back in 12 to 18 months.
What else changes when you submeter
Beyond who pays, submetering gives the property usage data it never had under a master meter. Daily reads catch leaks and abnormal usage quickly, common-area water can be measured and handled on its own, and lower utility expense improves cash flow, which can raise the value of the property. Submetering is regulated by states, counties, and cities, and the rules change often, so confirm what applies to your property first. NES tracks those rules for every community it serves and handles the install, reads, and resident billing.
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