Water Submetering in Arizona
Arizona allows water sub-metering and billing for water use and Dune has the most innovative and easy-to-deploy solution on the market.
Water Submetering Regulations in Arizona
Property Owners or Managers (landlords) can bill tenants separately for certain community services including utilities (e.g., water, gas, electricity) using submetering or ratio-based utility billing systems. The utility and any administrative fees must be disclosed to tenants prior to billing for submetering services.
Landlords of multi-family/residential properties can recover administrative fees, charging up to their actual and reasonable costs.
When submetering water in Arizona, landlords of mobile home communities can charge prevailing local single-family tariffs independent of actual water cost. There are similar provisions for sewer and waste water services. These provisions do not exist for ratio-based recovery methods (RUBS).
Additional information on Water Sub-metering in Arizona**:
**This list isn’t intended to be comprehensive and there may be other state and local regulations to consider.
Why Water Submetering is Growing in Arizona
Using Water Submetering to tackle Water Shortage in Arizona
In Arizona, addressing the state’s persistent water shortages is crucial, particularly given the region’s high drought susceptibility. Water submetering serves as an effective strategy by monitoring individual water usage in multi-tenant properties, encouraging conservation among residents due to their direct responsibility for water costs. Data suggests that properties implementing submetering systems can reduce water usage significantly, contributing to statewide water conservation efforts.
Furthermore, for property owners, submetering offers the benefit of improved Net Operating Income (NOI). By transferring the cost of water usage to tenants, owners are likely to observe a reduction in overall utility expenditures. This cost distribution not only promotes fair billing but also incentivizes tenants to use water more efficiently, leading to lower overall water consumption and enhanced property value.
Numerous condominium complexes are located across Arizona, driven by tourism and the need for affordable housing. Condominiums in Arizona are often master-metered for water, meaning that the Homeowner Association (HOA) fees cover the aggregate water bills. With the rising cost of water, HOA fees are ballooning, causing frustration among various ownership personas and groups. Water use can vary significantly between short-term fractional renters, long-term renters, and owner-residents.
Submetering enables the cost of residential water to be separated from other HOA fees, ensuring that individual residents and owners only pay for what they actually use. This monitored and controlled expense fosters fairness, accountability, and responsible usage, ultimately resulting in lower overall expenses, more control, and conservation.
By employing water submetering, Arizona can tackle its water scarcity issues while also providing economic benefits to property owners, making it a win-win solution in the battle against drought.
Benefits of Water Submetering
- Maximize Expense Recovery: Recovering water costs can dramatically reduce operating expenses, particularly important as rates and fees will continue to rise
- Increased Property Value: Reducing operating expenses increases Net Operating Income (NOI), driving higher property valuations
- Promotes Conservation: Provides detailed consumption data, empowering residents to optimize use and minimize waste
- Leak Detection: Early identification of anomalies helps prevent substantial water loss and cost exposure
- Fair Billing: Ensures tenants are charged fairly and pay for actual use, fostering transparency and accountability
- Data-Driven Management: Helps in making informed decisions regarding water policy and infrastructure enhancements
- Positive Environmental Impact: Visibility and accountability drives efficient water use and conservation
Key Steps to Prepare for Water Submetering in Arizona
- Compliance and Selection: Verify local regulations and lease agreements to ensure the permissibility of submetering and select a reputable submetering company.
- Installation and Notification: Install the solution, including submeters and remote reading devices, and integrate usage data in preparation for billing services. Inform tenants about the new systems and billing changes with sufficient lead time.
- Billing Integration: Implement or utilize the existing billing system to accurately charge tenants based on their individual water usage.
FAQs
Water submetering refers to the practice of installing individual meters in each unit of a building to accurately measure each tenant’s water usage. This allows for precise and individual billing based on actual consumption.
Water submetering benefits residents by ensuring they are only billed for the water they actually use, encouraging conservation. Property owners benefit from reduced disputes and enhanced management of water resources, leading to potential cost savings.
Arizona does not require water submetering statewide; however, it is highly encouraged, especially in cities facing water scarcity issues. It is seen as a measure to promote water conservation and to ensure fair billing practices
Initial steps include selecting a certified submetering company, choosing suitable metering technology for the property, and carrying out a professional installation to ensure system reliability and regulatory compliance.
Water charges are calculated by recording the amount of water each unit consumes via the submeters. This usage data is then multiplied by the local water rate to determine the charge for each unit, ensuring billing is based on actual usage.
For maintenance or issues, residents and property managers should contact the submetering company that installed the meters or their property management team responsible for utilities. They provide necessary support and resolve any issues related to submetering systems.