EDM Solutions—Smart Prepaid Sub-Metering

Installing a prepaid submeter system for your tenants will not directly reduce your main electricity bill as a landlord. 

Here's how it works and how it can affect your billing:

Main Points to Consider

• Main Utility Bill: As the landlord, you will still receive a main electricity bill from your utility provider for the entire property. This bill covers the total electricity consumption of the property, including common areas and individual rental units.

• Tenant Usage: With prepaid submeters, the electricity usage of each tenant is measured separately. Tenants pay in advance for their estimated consumption, which can help you collect payments more reliably.

• Reimbursement: The prepaid amounts collected from tenants should correspond to their actual usage, which means you, as the landlord, can use these payments to cover the main utility bill. If tenants are effectively managing their usage and paying in advance, you should have a more consistent cash flow to pay the main electricity bill.

• Cost Recovery: If tenants consume more electricity than anticipated and their prepaid credits run out, they will need to purchase additional credits. This ensures that the cost of their electricity consumption is covered, and you are not left with unpaid utility expenses.

Benefits of Prepaid Submeters:

• Improved Cash Flow: Ensures you receive payments upfront, reducing the risk of unpaid bills.
• Fair Billing: Tenants are charged for their actual usage, encouraging responsible consumption.
• Ease of Management: Simplifies the process of collecting utility payments from multiple tenants.

Potential Indirect Savings

While your main electricity bill itself won't be reduced by the installation of prepaid submeters, you may experience some indirect financial benefits:

• Reduced Default Risk: Prepayment reduces the likelihood of tenants falling behind on their utility payments.

• Encouraged Conservation: Tenants who are directly responsible for their utility costs are more likely to conserve energy, potentially reducing overall consumption on the property.

• Administrative Efficiency: Streamlined billing and payment processes can save you time and resources in managing utility payments.

In summary, while your main electricity bill will not be directly reduced, prepaid submeters can help ensure that tenants' utility costs are covered, improve cash flow, and encourage more responsible energy usage among tenants.

• Installation: Submeters are installed in each rental unit to measure the specific utility usage of that unit.

• Prepayment: Tenants purchase a certain amount of utility credits in advance.

• Usage Monitoring: The submeter deducts the utility usage from the prepaid credits.

• Recharging: When the credits run low, tenants must purchase more to maintain their utility service.