small center utility metering?
I was reviewing some leases we have with our tenants and noticed that one of our properties mentions the opportunity to submeter.  Does anyone have experience with this and could you tell me how you handle it?  We're just a small family ownership group...
[{"id": "ehfqbg6", "text": "I've never done it myself, but it's typical to have language in the utility section of leases that includes an option for the landlord to submeter, if needed, in order to provide utilities to the space. I would think this might come up if you were dividing a space and instead of installing separate meters, it'd be easier to submeter. ", "replies": [], "depth": 1}, {"id": "ehg5c1t", "text": "It can be a goldmine in the right area with expensive utilities and lots of sun (california).  Stick some solar on the building(s), take the tax credit and charge them for the power.  If you want to be nice just charge them the off peak rate for all of their usage.  Win Win.   \n\n&amp;#x200B;\n\nIf you are billed on time of use it's also pretty hard (but possible) to calculate their time of use charges.  And be aware it is very likely you are prohibited from charging them a rate higher than the utility rate.  ", "replies": [], "depth": 1}, {"id": "ehg6egx", "text": "It\u2019s probably going to be more hassle than it\u2019s worth at the end of the day. If your property was never managed with separate meters in mind then you\u2019re probably looking at a pretty significant amount of an electricians time to demise each unit and put them on their own panels. You will also need to ensure that the common areas are on a separate meter as well.\n\nThen you have the cost of installing the individual meters. \n\nThen the administrative hassle of reading the meters each month and calculating each tenant\u2019s cost - keeping in mind that you can\u2019t mark it up anyway. \n\nHowever, if your units are properly demised electrically, and you want to deal with the admin side then it\u2019s probably a few hundred to a few thousand dollars per unit to install the meters. \n\nIf you have NNN leases with gross-up provisions then there\u2019s basically no payback. If you\u2019re fully gross then maybe it might make sense.", "replies": [], "depth": 1}]