Houston remains a popular location for homeowners and investors. The city is experiencing steady economic growth and a construction boom that continues to attract new residents. A large share of the population lives in multifamily housing, where one of the key challenges is water submetering.
Water Submetering – What and Why
Water submetering is a system where, instead of the utility billing the entire building and the owner dividing costs among tenants, individual submeters are installed to measure water consumption at the unit level. This enables each resident to be billed for their actual usage, replacing shared billing methods that can unfairly benefit some tenants while penalizing others.
A two-year study of multifamily residential billing practices by the Environmental Protection Agency found that water submetering reduces actual water consumption by approximately 15% due to changes in consumer behavior.
Water submetering is an essential tool for property owners and residents alike, enabling them to effectively manage their water consumption, measure and track usage accurately, provide fair, accurate, and transparent billing, while remaining compliant with all Texas Water Code regulations. This guide will tell you everything you need to know about submetering in Houston – from legal requirements to best practices and what it could mean for your bottom line.
The Legal Stuff
When it comes to water submetering in Houston, the most important source of legal regulations is the Texas Water Code, and the Texas Administrative Code written and enforced by the Public Utility Commission of Texas lays out some specific standards too.
Water submetering is permitted by the Water Code, although it isn’t required. Since water submetering isn’t required by the water code, many property owners won’t use it. But for owners and residents of properties where submetering is used, it’s important to understand what’s allowed… and what isn’t.
Billing Practices
Tenants can’t be billed for utility deposits, disconnect or reconnect fees, or water usage from vacant units. However, property owners are allowed to charge tenants for the actual cost of their water as determined by their meter. To maintain regulatory compliance, accurate submeters are essential as outlined in the Texas Administrative Code.
Installation & Maintenance
Property owners are responsible for the safe and correct installation of submeters, accurate to the level specified in the code, as well as their maintenance. This is a legal requirement according to the Administrative Code. It’s also the responsibility of property owners to keep records of all submeters, their maintenance schedules, dates of calibration and testing, as well as the locations of submeters.
Tenant Rights & Protections
Landlords must disclose their submetering rules clearly and accessibly to tenants. This includes things like how charges are calculated and billing frequency. Tenants have the right to access their billing records and submeter test results. Where disputes arise, tenants can request retesting.
Water Submetering Benefits
With the legal stuff out of the way, we can think about the bottom line – the financial and other benefits property owners and residents can enjoy.
Tenants get:
Billing fairness and transparency: Residents can track their own consumption to understand how bills are generated.
Better control over billing: Residents can adjust their behavior to reduce bills.
Better conservation support: Residents looking to conserve water can accurately track their consumption.
Reduced billing disputes: Tenants can see how their bills are generated, leading to fewer disputes.
Owners get:
Cost recovery: Allocated billing often ends up with you covering tenants’ water usage. Submetering lets you bill tenants for their specific usage.
Leak detection and prevention: Early leak detection can save large amounts of money from damage, water waste, and repairs.
Improved Net Operating Income: The dollars you recover through submetering directly increase your NOI. For example, if your annual water bill is $100,000 and you recover 80% of that through resident billing, you’ve added $80,000 to your NOI. This not only strengthens your cash flow but can also increase your property’s value. Additionally, submetering often reduces administrative time and costs, further lowering operating expenses and improving overall efficiency.
Better tenant relations: When everyone understands the fair and transparent system, there’s little room for dispute. Tenants are happy they’re paying only what they owe, and you don’t need to deal with disputes.
Submetering Successes
In Santa Clara, California, water submetering solutions provider Meternet installed Mainlink’s smart submetering system in just 30 days. A total of 404 ultrasonic water meters for hot and cold water were deployed at the 202-unit Mission Terrace Apartments. Within the first two months, the Axioma ultrasonic meters detected six water leaks. In another project, the company reduced water use by 30% through the installation of a smart water metering system.
By offering sophisticated ultrasonic smart meters, Mainlink ensures accurate and precise meter readings, automated billing, seamless data collection and reporting, and advanced features such as leak detection. These proven results strengthen Mainlink’s position as a leading submetering technology provider – so it’s no surprise they’re expanding their strong presence in Texas.
The Bottom Line
Water submetering gives owners control over costs and operations, while providing tenants with fair, transparent billing directly related to their own personal consumption. Everyone benefits — utilities, property owners, and tenants alike – from reduced water waste, early leak detection, increased accountability, and cost savings. With Houston water bills set to rise by an average of 6%, water submetering is a practical, efficient, and attractive water management solution.
If you want to know more about water submetering. Reach out to Jennifer Yoingco, REALTOR®, and her team, The Houston Suburb Group. They’ll help you get ready to EXPERIENCE LIVING IN HOUSTON TEXAS!
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