What Are Submeters?
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Submeters are individual meters that measure each unit's water, gas, or electric use underneath a property's single master meter.
What are submeters?
Submeters are individual meters installed on each unit in a multifamily property to measure that unit's water, gas, or electric use. The utility still bills the property through one master meter, and the submeters track usage underneath it, so each resident can be billed for what they actually use. Water, gas, and electric can all be submetered. Modern submeters read wirelessly and report daily, which makes billing accurate and surfaces leaks fast. NES sells and services nonproprietary submeters, installs them, reads them, and bills residents in-house.
Water, gas, and electric submeters
Every major utility can be submetered. Water is the most common because it is often the largest recoverable cost, while gas and electric submetering depend on the property and the local rules. Meters can sit inside or outside a unit.
What modern submeters do
- Read wirelessly and report usage several times a day
- Meet recognized accuracy standards so billing is fair
- Flag leaks and high usage early
- Are nonproprietary, so you are not locked into one vendor
Why properties install them
Submeters exist to recover operating expense. Once residents pay for the water they use, conservation goes up and overall consumption drops, typically 15 to 30 percent for water. Submeters are also one of the best tools for detecting leaks, and common-area usage can be measured and billed accurately instead of disappearing into the master bill. Lower utility expense improves cash flow, which can raise the value of an apartment community or mobile home park. Most properties earn back the cost in 12 to 18 months, and some sooner.
Where submeters can be installed
All types of real estate can take submeters: apartment communities, mobile home parks, townhomes, and condominiums, whether new construction or existing buildings. Some properties already have meters in place and only need reading and billing service, while others need equipment from scratch. NES handles both and specializes in properties with 80 or more multifamily units.
Submeters and the rules
Submetering is regulated, and the laws change frequently and vary by state and county. They govern installation, meter accuracy, and how residents are billed. NES provides service in more than 43 states and monitors the regulations daily for the communities it serves, so owners do not have to track rule changes themselves. If you plan to install and service your own submeters, staying current with those regulations is on you, which is one of the main reasons owners hand the program to a submetering company instead.
Related questions
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