For rental property owners in Ontario, submetering represents a straightforward business case. When tenants pay for their own electricity based on actual usage, the building's electricity operating expense decreases. This can improve net operating income and, by extension, property value.
The financial mechanics are simple. In a bulk-metered rental building, the owner pays the entire building electricity bill and recovers it through rent. When submetering is introduced, in-suite electricity shifts to individual tenant billing. The building continues to pay for common area electricity, but the in-suite portion moves off the operating statement.
Tenant acceptance is usually high when the change is communicated properly. The key message is fairness: tenants who conserve pay less. Include information about OESP and other assistance programs for tenants who may have affordability concerns.
Rental property owners should be aware of the relationship between submetering and the Residential Tenancies Act. Suite metering by a licensed USMP is permitted under Ontario law. However, the timing of introducing submetering may need to be coordinated with tenancy agreements. Consult with your legal advisor on the specific requirements.
The installation process for rental buildings is similar to any other retrofit. A site survey evaluates the electrical configuration, a plan is developed, and installation proceeds with scheduled access to floors and (if needed) individual units. Minimal disruption is a priority.
After submetering is in place, the property owner benefits from reduced electricity operating expenses, better visibility into building consumption patterns, reduced risk of rising electricity costs (since in-suite costs are borne by tenants), and potential property value improvement through higher NOI.
For rental property owners considering submetering, the first step is a free building assessment. This determines the feasibility, approach, and timeline for your specific property.