I am.
There's no doubt about it. When you have to pay for your own power, you learn pretty fast about the value of conservation (and I'm not just talking about the environment!). It costs a pretty penny to keep a unit warm, cool, lighted, etc. I have properties where the tenant is responsible for their power and others where the cost is included in the rent. I can say for sure that those tenants living in an "all inclusive" scenario are the tenants most likely to keep windows open in early spring and late fall, to invite people over to do their laundry and even keep their front doors open in the middle of summer with multiple A/C units running!
Keeping in mind that the cost of power is going up (my area experienced provincial deregulation a couple of years back), and rents can only go up by a set percentage per year (check with your local rental and housing department), that means less profitability for my income properties and ultimately less passive income!
I very recently heard about No Cost Submetering and I'm excited about the possibilities!
Offered by Ista in the United States and Europe, and by Stratacon in Canada, currently over 1 million suites are being serviced by submetering units.
What is submetering and how does it work?
Submetering measures the electricity usage of each suite in a multi-unit building allowing each tenant to be billed separately for the power they use. Unlike many other submetering systems, rewiring of your building is not required. Instead, current sensors are attached to the wiring coming out of the main electrical panel to measure the electricity being used by each suite.
The Billing Process
1. The hydro company sends the building owner a bulk bill like they normally would.
2. Stratacon (Ista) reviews the consumption information transmitted from each unit.
3. Stratacon (Ista) collects payments from the tenants and remits the payments to the building owner.
4. The building owner pays the entire bill (covers the cost of building common areas).
5. Stratacon (Ista) administers the account and provides monthly account reports to the building owner.
6. Stratacon (Ista) handles all collections and assumes all bad debts.
By charging the tenants an administrative fee, Stratacon (Ista) recovers the capital costs of the equipment (over a 10 year period).
Highlighted in a recent CNN article, "No Cost Submetering can reduce overhead costs, make tenants accountable, help to identify possible Marijuana Grow-Ops and ultimately save energy (analyses show annual savings of 15%- 26%)."
...and that means more money in your pocket!
-- www.ThreePennies.com
With 9 years experience in Real Estate Investing and Interior Design, Victoria Pankhurst invites you to follow along on her journey to financial freedom at http://www.ThreePennies.com.