What Is Submetering and Why Is It Good Management Practice?
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Submetering measures each unit's utility use, which steadies budgets and lets you hold rent at market.
What is submetering and why is it good management practice?
Submetering is measuring and billing a unit's own water, gas, or electric use with a meter placed between the main utility meter and the unit. It is good management practice because it controls variable expense. Utility bills stop swinging your budget around, because the cost moves to the residents who use it. That lets you set rent at or below market and still keep your margin, since you are no longer covering unpredictable utility swings. NES manages, reads, and bills thousands of units monthly and tracks the rules that vary by city, county, and state. NES focuses on properties with 80 or more units. Residents also conserve once they see their own bills, and water use typically drops 15 to 30 percent, which lowers cost further.
How it controls variable expense
Utility costs are one of the least predictable lines in a property budget. Weather, rates, and resident habits all move them. Submetering passes the usage charge to residents, so the property's exposure to those swings shrinks and forecasting gets far easier.
What that means for rent and margin
- Stop absorbing month-to-month utility swings
- Set rent at or below market and keep your margin
- Residents conserve once they see their own bills
- Water use typically falls 15 to 30 percent
Related questions
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