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Submetering 101

Metering vs Submetering

Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team

Master metering bills the whole property as one account. Submetering measures each unit separately so residents pay for their own use.

Quick answer

What is the difference between metering and submetering?

Master metering means the utility measures the whole property through one meter and sends the owner a single bill, which the owner either absorbs or splits across units. Submetering adds an individual meter on each unit beneath that master meter, so each resident is billed for their own measured use. The difference matters because submetering ties cost to consumption: residents conserve, usage usually drops 15 to 30 percent, and the owner recovers cost instead of carrying it in rent. Master metering is simpler but hides individual use and leaves the owner holding the bill.

Master metering

  • One utility meter for the whole property
  • The owner gets a single bill and absorbs or splits it
  • Individual use is invisible, so there is no reason to conserve
  • Leaks can hide until the bill spikes

Submetering

  • An individual meter on each unit
  • Residents pay for their own measured use
  • Consumption usually drops 15 to 30 percent
  • Leaks surface early through daily reads

Related questions

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Common questions

Metering vs Submetering

For most multifamily owners, yes. Submetering recovers cost and lowers usage, while master metering leaves the owner absorbing the bill. The exception is where meters cannot be installed.

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