Why Should Landlords Monitor Electricity Usage?

Updated December 9th, 2022

Landlords should monitor their tenants’ electricity usage for a few reasons. Firstly, if a tenant is using more electricity than they’re supposed to, it could be because they have some appliance constantly running in their home that’s not supposed to be there. Secondly, if a landlord knows which tenants use the most energy, they can target those individuals with energy-saving tips to help them save money on their monthly bills. Finally, by monitoring electricity usage, landlords can spot any red flags (e.g., an apartment suddenly becoming much more energy-intensive) and investigate what might be happening.

What Are Smart Meters?

Smart meters record the amount of gas and electricity used at your home in the same way traditional meters do. A smart meter eliminates the need for the property owner or a utility worker to manually submit a meter read numbers because the information is transmitted wirelessly to the energy provider.

There are several advantages for landlords in particular. Keep reading to learn more about the benefits of installing smart meters in your rental properties and your legal duties as a business owner.

As a landlord, it is essential to know how much electricity your tenants use. High electricity usage can be costly and lead to higher utility bills for you. By monitoring your tenant’s electricity usage, you can help them be more energy efficient and save money.

Reasons to Monitor Energy Consumption

Landlords should monitor electricity usage to understand how well a property is managed and used. Monitoring electricity usage can help landlords save money on energy costs, identify potential problems with appliances or electrical wiring, and understand how much different energy parts of the property use. By understanding electricity usage, landlords can make more informed decisions about renovations, repairs, and other cost-saving measures.

Before you can learn how to monitor usage here, read the following benefits first.

Reduced Electricity Bills

Sub-metering energy usage at the tenant level increases transparency, decreases waste, and ultimately halves electric bills. There won’t be any huge fees. You will be able to bill tenants with accurate and precise information.

Accurate and Fair Billing

Having equal treatment is not the same thing as being fair. You can only treat your tenants fairly regarding utility bills if they all use the same amount of water, gas, and electricity (which is highly unlikely). Since a truck-driving bachelor who is away from home for three weeks every month would be charged the same amount for utilities as a family of five, submetering provides equitable billing.

Rewards Tenants for Energy Efficient Use

Bundling power expenses into rent in a “eat all you can” fashion is flawed since it rewards wasteful tenants while punishing those careful with their usage. Monitoring energy consumption encourages landlords in holding tenants responsible for energy use. With an electric meter, renters can keep tabs on their usage and top off their accounts at their convenience.

Lesser Landlord-Tenant Disputes

Landlord-Tenant disputes are common, but these disputes can be reduced by providing accurate energy usage.

Regarding electricity consumption, landlords and tenants often have different opinions on who is using more than their fair share. This can lead to conflict and disputes between the two parties. With a smart meter in place, however, landlords and tenants can get an accurate reading of how much electricity is used at any given time. This will help to alleviate any disputes that may arise over electricity usage.

Improve Market

Submetering can help you save money on utilities, keep your tenants happy, and increase your building’s value. Property owners facing tough competition in the real estate market always seek an edge. If you’re trying to clinch a deal on a new lease, you can leverage submetering and its many advantages as a selling point.

Save Energy

Tenants will be more motivated to limit their energy consumption if they are required to pay for it. If you reside in an apartment building with 49 other rental units and each unit is invoiced separately, then reducing your energy consumption by $100 will only save you $2. If you are submetered, however, you will enjoy the $100 savings because you will be fairly charged for only the energy you use. A significant reduction in overall power consumption is possible once all tenants adopt more eco-friendly habits.

How To Start Monitoring Electricity Consumption

As the trend of working from home continues through 2021 and beyond, landlords will confront rising utility expenditures. They must simplify and centralize energy efficiency. This season is great for switching to the smart electrical panel and seeing immediate benefits.

Reduce expenses with the use of technology

By adopting more resourceful options, landlords and tenants can play an instrumental role in the paradigm shift toward efficient fuel consumption while saving money through a more precise and real-time examination of energy consumption. Installing smart energy monitors throughout a portfolio of properties can be a lucrative investment due to the benefits on both sides (efficiency for landlords and lower utilities for tenants).

Check Current Energy Usage

It is easy for tenants to forget to manage and take meter readings, leading to approximated readings and maybe confusion about why their costs have grown. Assuming this phase is eliminated, remote energy monitoring becomes a more secure and streamlined process.

Ask Expert Help

Wondering where to begin with smart meters? Some utility companies can track the effectiveness of smart meters on behalf of property managers and landlords. Landlords will appreciate the improved efficiency and transparency brought about by these checks and balances and the assurance that their systems are in good operating order.

Final Thoughts

Landlords should monitor electricity usage to save money and keep their tenants happy. By understanding how much energy different appliances use, landlords can better decide what appliances to put in their properties and save on their monthly electric bills. In addition, if a tenant uses excessive electricity, the landlord can address the issue before it becomes a bigger problem. Have you ever monitored your electricity usage? What tips would you give landlords for reducing their expenses?

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