Stop Overpaying for Water: Install Individual Meters in Your Body Corporate
Water management is an ongoing and important issue for body corporates and Strata property managers in Australia. With increasing water bills and rising costs of living, body corporates are looking for ways to reduce costs and increase property values.
Traditionally, body corporates have relied on entitlement billing, or in some cases, the body corporate pays for all water usage. However, there is a growing trend towards the installation of individual water meters in body corporate properties, with significant benefits for both owners and tenants!
Current Types of Water Billing
Entitlement billing
Entitlement billing is a method of dividing the total water bill among all lot owners in a building, regardless of their actual water usage. This means that everyone pays an equal share of the water bill, regardless of whether they are high or low water users, resulting in some lot owners subsidising the water usage of others.
Additionally, entitlement billing does not provide any incentives for lot owners to reduce their water usage. If a lot owner knows that they will pay the same amount for their share of the water bill, regardless of how much they use, they may not feel compelled to reduce their water usage. This can result in overall higher water bills for the building and an unnecessary waste of water resources.
Body corporate pays the lot
A rare alternative is for the body corporate to pay for all water usage in the building, which can lead to higher fees and levies and can result in a lack of accountability for individual water usage.
A new method – individual water meters
The benefits of installing individual water meters are numerous. Firstly, it encourages water conservation, as residents are more likely to be mindful of their water usage if they are paying for it. The increased value that it adds to property is another great benefit, as potential buyers are increasingly seeking environmentally friendly and cost-effective living arrangements.
The most obvious benefit that comes from separate water meters, is a fairer distribution of costs. This results in cost savings for those lower water-using residents, as they only pay for what they use. However, this means that those residents who are using more water than the average, many of them being families, will see their water bill increase with separate water meters.
The upfront cost of installation can also be a financial burden, particularly for owner-occupiers. For owner-investors, the increased cost of water may result in higher rental prices or lower returns. Additionally, for tenants, the installation of separate water meters may result in confusion or disputes around bill payments, particularly if some units are unoccupied.
There will always be risks to upgrading to separate water meters, however the overall water conservation, cost savings and increased property value are huge advantages that body corporates won’t get any other way.
Upgrading to Separate Water Meters
Upgrading to separate water meters for all tenants takes time. Firstly, the body corporate involved should conduct their own feasibility study to assess the potential costs and benefits of installation. This study should also include a consultation process with all stakeholders to determine their needs and concerns. If you need help with this first step, book a consultation with our team at Fair Water Meters. We can guide you through that process and equip you with what you need to get your body corporate committee over the line.
Book a consultation
Once this study is completed and the decision to proceed is made, an installation plan needs to be developed, including a timeline for installation, contractor selection, and necessary approvals. At Fair Water Meters, our process is as follows;
The body corporate is responsible for funding the installation of separate water meters, which can be a significant investment. However, the benefits of reduced costs and increased property values make it a worthwhile investment. Before proceeding, the body corporate must obtain approval from all relevant stakeholders, including lot owners, and ensure that all necessary permits and approvals are obtained from local authorities.
In some cases, it may be more appropriate for a body corporate to upgrade existing water meters rather than installing new ones. This decision would typically be made in cases where the existing water meter infrastructure is still in good condition and can be upgraded to provide more accurate billing. This can result in cost savings for the body corporate while still providing fair and accurate billing for residents.
All new & future body corporate buildings, at least in Queensland, are required to install separate water meters from the get-go in accordance with 2008 legislation.
If you’re thinking about a sub-water metering system for your body corporate or strata property, get in touch with us today. Individual water meters for apartments and strata are becoming increasingly popular, as they provide a fair and accurate method of water billing, encourage water conservation, and can lead to cost savings for residents. While there are potential risks that we can walk through with you, the benefits of installing separate water meters far outweigh the negatives.
