Submetering in Arizona
Last reviewed by NES Editorial · September 2026
Arizona's Residential Landlord and Tenant Act (A.R.S. 33-1314.01) lets owners submeter and bill residents for utilities plus an actual-cost admin fee. Here is how it works, what the statute requires, and the cities NES serves.
Submetering is common across Arizona, and NES runs it end to end. We install nonproprietary meters that you own, read them every day, pay the master-meter bill, and bill your residents. Our compliance team tracks the Arizona rules, set by the AZ Residential Landlord & Tenant Act, so your billing holds up if anyone ever checks it. NES has worked this way since 1968, in more than 43 states.
Yes. Submetering is allowed in Arizona, with some restrictions.
The rules come from A.R.S. 33-1314.01, and NES handles them for you.
What submetering is
Submetering puts a meter on each unit and bills residents for the water, gas, and electric they actually use. The idea has been around since the 1920s. Today’s meters read wirelessly every day, so usage is accurate and leaks show up fast instead of on the next bill.
Why owners in Arizona submeter
- Residents pay for what they use, so water consumption usually drops 15 to 30%.
- Leaks are caught within a day, not at the end of the month.
- Common-area usage is measured and billed accurately, not absorbed by the owner.
- Most installs pay for themselves within 12 to 18 months.
Submetering laws and rules in Arizona
- Arizona law (A.R.S. 33-1314.01) lets an owner bill residents for water, sewer, gas, electricity, and trash through submetering
- The owner may pass through the utility's charges plus an administrative fee for actual administrative costs only, with no additional markup
- Each bill must show the charges, the opening and closing meter readings, the read dates, and any administrative fee
- Owners must give at least 90 days notice before starting submetering on an existing tenancy
- Using submetering does not by itself make an apartment community a regulated public water system, and NES tracks the current requirements
- Mobile home parks follow Arizona's separate Mobile Home Parks Residential Landlord and Tenant Act, which requires a meter for each space and does not allow RUBS billing or administrative fees, with residents charged no more than the serving utility's single-family residential rate
Local rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.
Official sources: A.R.S. 33-1314.01
General information only, not legal advice. Confirm current rules with the AZ Residential Landlord & Tenant Act or a qualified attorney.
NES submetering by city in Arizona
Local submetering guides for Arizona communities NES serves.
Submetering in Arizona
See what your Arizona property can recover.
Send us your master-meter bills and unit count. We’ll run the numbers on your actual property and reply within one business day with a clear, no-obligation estimate.