As utility regulations tighten and sustainability becomes a growing priority, property managers are facing new challenges in how they handle billing and usage data. Submetering is quickly replacing allocation methods like RUBS, offering greater accuracy, compliance, and cost savings. At the same time, automation and system integration are transforming utility billing into a more efficient and transparent process. These changes not only reduce errors and expenses but also increase tenant satisfaction and trust through clearer billing. In this blog, I will explore why submetering and billing automation matter, the legal and operational considerations to keep in mind, and the best practices that can help property managers scale smoothly across properties and utilities.
There is a growing importance of submetering, utility billing automation, and the integrations that help property managers operate more efficiently while meeting regulatory demands.
Across the United States, compliance requirements around utility billing are becoming stricter. For example, according to the Los Angeles Department of Water and Power, since January 1, 2018, all new multifamily buildings applying for water service in California must install meters or submeters for each unit. This regulation highlights the broader push away from allocation methods like RUBS and toward true submetering.
The lesson is clear: property managers can no longer treat submetering as optional. It is quickly becoming the industry standard and an essential foundation for lawful billing practices.
Once compliance is understood, the technical side comes into play. At the core of utility billing is the ability to capture, store, and process usage data. To do this effectively, you need a billing or customer information system that connects with your metering hardware.
Automatic Meter Reading systems, or AMRs, collect usage data. Manually moving those reads into billing software is tedious and error-prone. Many AMR systems provide portals, but the most effective approach is direct integration with the billing platform. Beyond this, few additional integrations are necessary. The key is seamless communication between the metering system and the billing system.
Not only that, but transparency directly affects resident satisfaction. Intuitively, we know customers like simplicity, a study published in Science Direct shows that consumers report higher satisfaction when their usage and billing are presented clearly and simply. When tenants can see exactly how their usage translates into charges, disputes decrease, trust improves, and satisfaction rises. This is a critical factor for long-term tenant retention.
Transparent billing is therefore a critical factor not just for smooth operations but also for long-term tenant satisfaction. Bills should clearly show dates, reads, rates, and calculation methods so that residents feel confident they are being billed fairly.
Operational efficiency is another major advantage of modern utility billing systems. One report by Inoxoft found that automation can reduce billing errors by up to 75% and lower costs by as much as 20% for property management companies. The result is fewer disputes, less staff time spent troubleshooting, and more accurate reporting. These benefits compound over time, especially as a property portfolio scales.
The benefits are significant: fewer disputes, less staff time spent troubleshooting, and more accurate reporting. These advantages only grow as a property portfolio scales. By reducing manual processes and automating billing workflows, staff can focus more on resident service and less on back-office corrections.
Submetering is not only about compliance and efficiency; it also impacts sustainability. According to the EPA, submetering reduces water usage by up to 15%. This means real cost savings and a greener footprint for property managers and owners.
Sustainability also carries competitive value. As tenants increasingly seek out eco-friendly practices, properties that demonstrate measurable conservation gains through submetering can stand out in the marketplace. This positions submetering as not only a compliance requirement but also a marketing advantage.
With compliance, efficiency, and sustainability in mind, what should you look for in a billing system? The most important features are:
Clear rate setup and calculation for staff
Easy adjustments for move-ins and move-outs
Support for fees, late payments, and dispute resolution
Easy-to-read resident bills that explain usage and charges
A system that combines these features builds confidence for both staff and tenants while ensuring efficiency.
Collecting payments efficiently is another crucial piece. Most properties already use a Property Management System, or PMS, for rent. The most cost-effective and scalable approach is to push utility charges directly into the PMS.
This way, residents can pay rent and utilities in one familiar place. The result is fewer platforms to manage, smoother resident experiences, and a billing process that scales easily across multiple properties.
Another critical issue is data ownership. In almost every case, utility usage data belongs to the property manager or building owner, not the billing provider or technology vendor. Submeters are part of the property, and their data should transfer smoothly if ownership changes or providers are switched.
Unfortunately, some providers make this difficult, even holding data hostage or charging release fees. To protect yourself, insist on contractual guarantees that ensure open access and portability of data.
The technology partners you choose determine how scalable and sustainable your billing operation will be. Look for partners who:
Support seamless data transfer and transparent implementation
Integrate easily with AMR and PMS systems
Deliver accurate, simple billing processes
Offer reliable customer service with regulatory expertise
Strong partnerships reduce risk, streamline operations, and make expansion possible without major system overhauls.
From a customer perspective, the billing experience should be smooth, clear, and supportive. Tenants want easy-to-read bills and access to mobile-friendly portals. Property managers want systems that save time and reduce errors.
Providing robust support options such as knowledge bases, training, and live assistance reduces frustration. Having staff who understand both the technology and the regulatory framework adds another layer of protection for property managers.
Rolling out utility billing requires realistic planning. Depending on property size and complexity, integration may take several weeks. Budget planning should include software licensing, integration, and training. Staff resources are also needed for data migration and communication with residents.
By planning thoroughly, you can avoid disruptions and ensure a smooth transition.
Submetering and utility billing are no longer optional conveniences. They are becoming regulatory requirements, efficiency tools, sustainability drivers, and tenant satisfaction builders. By focusing on compliance, transparency, automation, sustainability, and strong partnerships, you can deliver a billing service that not only works but stands out.
What should you do now?
If you are preparing to expand into submetering and billing services, start by evaluating your compliance requirements, confirming system integrations, and ensuring you have control over your data. With these foundations in place, you can build a service that is accurate, scalable, and competitive for years to come.
Ready to streamline your utility billing? Our experts are here to help you find the best solution for your needs. Contact us today to get started.