# Submetering a Building

Source: https://submeter.com/submetering-a-building/
Publisher: National Exemption Service (NES), https://submeter.com. Last reviewed September 2026.

How to put a meter on each unit so residents pay for what they use, what it takes to install in an occupied building, and what changes for the owner afterward.

## How do I submeter a building?
Submetering a building means installing a meter for each unit so you can measure and bill water, gas, or electricity by actual use. NES handles the whole process, from the meters and wireless equipment to the monthly billing and collection from residents. Once residents pay for what they use, the owner's cost for that utility drops sharply, and water use alone usually falls 15 to 30 percent. The investment often pays for itself in 12 to 18 months. NES works with new construction and existing buildings, whether you already have meters in place or need them installed. We focus on properties with 80 or more units and serve more than 43 states. NES also offers extended warranties on submeters, so the equipment you own stays protected for years.

## What can be measured
Every major utility can be submetered. Water, gas, and electricity are the most common. Once meters are in place, NES reads them wirelessly each day, generates the bills, and collects from residents, so your team does not have to manage the math or chase payments.

## Benefits beyond cost recovery
- Find underground leaks early through daily usage data.
- Bill common area utilities to residents where state law allows.
- Raise the value of the property as net income grows.
- Recover utility costs on vacant units.

## Questions
**Will submetering cover the whole building's utility cost?**
The goal is to recover most of it. Once residents are responsible for their own use, the owner's share of that utility nearly disappears, and the total billed to residents never exceeds the master-meter cost.

**How long until it pays off?**
Most owners earn back the cost in 12 to 18 months, and some sooner, driven by recovered costs and lower overall use.