Abstract
Third‐party billing for water and wastewater in the multifamily housing sector is growing at an estimated rate of 25% per year, but many water providers are unaware of the effect, implications, administrative issues, and potential water savings of this practice. The National Multiple Family Submetering and Allocation Billing Program Study evaluated the merits of separate billing programs including the potential water savings, costs, and benefits from the perspectives of utilities, property owners, and residents and analyzed the accompanying administrative and regulatory issues. Properties equipped with submeters or that have undergone a billing system conversion were identified and compared against control properties in which water and wastewater fees are included as part of the rent. It was found that the practice of installing individual water meters (submetering) in multifamily properties and billing based on actual consumption results in substantial water savings. Water billing practices based on allocation methods (ratio utility billing systems) did not effect savings in water consumption.
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