water sub-metering

[Jim Jerdon]

Hello Ms. Jackson,

Thank you for your time, my wife and I own a small manufactured community (50 spaces) of 55 and older residents in south eastern Pa.. Our monthly rent is $295/mos. Included in this fee is water and sewer. The annual average water/sewer cost is $12,000. In your opinion would it be benificial to invest in sub-metering for a community our size. Also we have no employees so I would assume the duties of meter reading. How involved is the billing process and what can be done in the event of non-payment. Thanks again.

[chrissy jackson]

One of the first questions to be answered is if you are on a well or on city water/sewer. On a well in PA when you begin billing for water, you are then subject to lots of regulatory oversight. That is not always cost effective. If you are on city water, then, yes, you should definitely consider it. If you can recoup your costs within a 12 - 15 month period, it is a good investment. Usually, water meters are installed so the first billing period coincides with a normal rent increase. You give no rent increase, but begin billing for water rand sewer instead. Lots of companies provide billing for you, it is not hard or complicated, provided you have the correct rate information from the municipality. Usually, you would apply all payments made by the resident to the water before you apply it to the rent. Then, any unpaid amount on their account is rent and you can evict for nonpayment. With older homes, water usuage can be really high due to leaky faucets, running toilets, etc. Sometimes people on a tight budget cannot afford to make repairs.