Demetree Real Estate Blog

Why Submetering Utilities is Important for Your Mobile Home Park

[fa icon="calendar"] 11.19.2016 / by Rory Williams


Most utility providers will bill mobile home parks based on the reading from the parks master meter. This means that the cost of utilities cannot be isolated to specific units and, therefore, is rolled into the monthly rental rate. However, this leaves little incentive for residents to use their water, gas or electricity efficiently, or to report leaks on the premises.

Installing submeters in your mobile home park is essential to cutting costs and increasing profitability. Here are a few reasons why submetering utilities is important for your mobile home park:

Submetering Helps Prevent Leaks and Water Damage

Residents of your mobile home park are less likely to report water leaks if they know they don’t have to foot the bill. By submetering utilities, you are actually saving yourself money in two different ways. The first is that residents will be responsible for any and all water usage that takes place in their unit. This means that the excess water usage won’t be on your tab.

The second way submetering saves you money is by preventing water damage. Residents will be more likely to report or fix water leaks right away if they know it will run up their water bill. This means that the chances of water damage occurring on the property are much smaller.

Submetering Promotes Energy Conservation

When residents are responsible for their own utility bills, they tend to be much more conservative with their energy usage. In fact, multiple national studies have concluded that a submetering system results in a 18% to 30% drop in energy consumption within the first few months. This is a huge benefit for mobile home park owners who are not only concerned with energy consumption, but want to see their property values increase as well.

Submetering Allows For Competitive Rental Rates

For mobile home park owners who do not submeter their utilities, this charge is usually rolled into the monthly rental rate. When you submeter the utilities, you can reduce the monthly rental rates in your mobile home park and be more competitive. Also, since utility rates don’t have an effect on your rent prices, you won’t have to raise your rent whenever utility rates go up.

The Largest Uncontrolled Expense

When submeters are not in place, water, electric and gas utilities make up the largest uncontrolled expenses in mobile home parks. This is why submetering is such an important step for park owners who wish to cut costs and maximize the value of their investment.


Topics: Mobile Home Park

Rory Williams

Written by Rory Williams

Rory is the managing partner of Demetree Real Estate Services, a diversified real estate organization focused on investment, development and real estate services. He has experience running the operations of a private real estate portfolio with 5MM square feet and operations in 8 states.