Smoothly Transition Tenants to Sub-metering: Best Practices for Landlords

At a glance

• Sub-metering is an infrastructural piece to smart building development, energy conservation, sustainability and cost controls.
• Smoothly introducing and executing a retrofit utility sub-metering project is critical for maintaining trust and strong relationships with commercial and residential tenants.
• Open and transparent communication is key to helping tenants understand the benefits of sub-metering and reducing resistance.
• Property managers and contractors must do their due diligence to navigate complex regulatory requirements.
• Engaging a reputable sub-metering partner is key to avoiding unnecessary setbacks and costs

What is Sub-metering?

Sub-metering is the personal usage tracker in the utility world, and offers solutions to challenges typically associated with leases and rent which include utility costs. Instead of tenants in a development or apartment splitting a utility bill evenly or everyone experiencing a rent increase to adjust for increased utility usage, sub-metering makes sure everyone pays for exactly what they use—no more, no less.

Whether it’s electricity, water, or gas, sub-metering puts tenants in control of their consumption and costs. It also encourages energy-effecient practices while giving offering property managers a solution to utility guesswork and inaccurate billing practices.

Common Pitfalls for Unit Sub-Metering

Transitioning to sub-metering with current tenants can be tricky and missteps with your approach, messaging, tact, and code requirements can open the door to friction. While sub-metering offers numerous benefits, landlords should be mindful of these common pitfalls:

While sub-metering offers numerous benefits, landlords should be mindful of common pitfalls, such as:

• Inadequate or passive communication can spark confusion and resistance. Tenants who feel left out of the process may view sub-metering as an unnecessary or unfair cost burden.

• Overlooking relevant regulations can cause project delays, expensive auditing, and sunk costs in repairing errors.

• Partnering with a sub-metering billing company with poor customer service, non-transparent billing practices and insufficient regulatory expertise can lead to unnecessary tensions between tenants and property managers.

• Failing to follow through with post-launch monitoring leaves your properties vulnerable to avoidable billing discrepancies and costs that can compound excessively overtime.

Communicating Tenant Benefits of Sub-Metering

To ease tenant concerns, landlords should clearly communicate the benefits of sub-metering. These include:

• Fair Billing: Tenants pay only for the utilities they use and can avoid rent increases that essential subsidize the excessive consumption of neighbors.
• Potential Savings: When tenants can see and track their own usage, they are more likely to adopt energy-saving behaviors, such as turning off lights when not needed, running dishwashers during off-peak hours, or reducing water usage.
• Transparency: Tenants will receive detailed bills showing exactly how much electricity, water, or gas they consumed, making it easier to understand and verify costs.
• Environmental Impact: Consumption tracking encourages and enable energy conservation, leading to a smaller carbon footprint.

By presenting these advantages in a clear and approachable way, landlords can foster a smoother transition and address tenant concerns before they arise.

Transparency in the Sub-Metering Process

Transparency and honesty are critical to easing tenants into the sub-metering transition. Landlords should clearly communicate every step of the process to avoid confusion and build trust. This includes explaining:

• The billing process: Inform tenants about who will be handling their utility bills (often a third-party company), how the billing process works, and how they can access their usage data. Tenants should feel confident that their bills will be handled professionally and fairly.
• Required access to units: If contractors will need access to individual units for installing sub-meters, give tenants plenty of notice. Provide a detailed timeline for installation and explain any potential disruptions to daily routines.  
• Communication channels: Ensure tenants know whom to contact with questions or concerns—whether it's the sub-metering company or a property management representative. Clear communication channels reduce frustration and enhance tenant cooperation.

Additionally, landlords should go beyond the bare minimum. Consider holding information sessions or Q&A meetings to give tenants a platform to voice concerns and ask questions. This can prevent misunderstandings and foster a collaborative approach to the transition.

Understanding Legal and Regulatory Requirements

Compliance with local and federal regulations is critical. In Canada, landlords must ensure sub-meters meet Measurement Canada standards and adhere to provincial rules. For example, Ontario requires a 90-day notice before implementation, while Quebec has its own specific tenant notification requirements. Consulting with experts or sub-metering project consultants helps landlords navigate these regulations.

Additionally, tenants have consumer rights regarding accurate billing and access to usage information, as outlined by Measurement Canada. Informing tenants of these rights builds trust and prevents disputes.

Selecting the Right Sub-Metering Partner

A successful sub-metering system depends on partnering with the right company. Consider these key factors when choosing a sub-metering provider:

• Experience: Select a company with proven success in similar properties and expertise in Canadian regulations.
• Reputation: Read reviews and ask for case studies to gauge their track record.
• Customer Service: Ensure they offer quality support for both landlords and tenants.
• Transparency: The company should clearly explain their fees and services to avoid surprises.

Request multiple quotes, compare service levels, and choose a scalable partner who can grow with your property’s needs. A reliable partner ensures accurate billing and compliance, saving you from potential legal and operational issues.

Partner with VIP Meter Services for Your Sub-Metering Project

Ensuring a smooth and compliant implementation requires expert guidance and meticulous attention to detail. That’s where VIP Meter Services comes in.

VIP Meter Solutions, is a Mississauga, Ontario-based sub-metering solution provider accredited through Measurement Canada. Our submetering services team have decades of experience working with general contractors, engineers, and property managers to navigate the commercial and residential sub-metering systems installations.