Who can register a Metro Prepaid sub meter?
Is it legal to shut off utilities just because the tenants don’t pay?
Disclaimer – This is not legal advice. Metro is not a lawyer or legal practice and landlords should seek state specific independent legal advice.
The question needs unpacking:
2.1 It’s generally illegal to shut off utilities because tenants don’t pay rent.
2.2 With prepay energy meters you don’t as a landlord act to disconnect electricity. Whoever is using energy may act to disconnect if the meter has insufficient credit. This is known in the industry as self-disconnect.
Some tenants like to use this feature deliberately to manage their energy costs.
I know that where prepay meters are in use as they are in many US states this legal view is generally accepted.
2.3 Acting legally is no guarantee you won’t be sued but there may be insufficient profit scope for continent fee attorneys to take this on and the average tenant topping up $25 a month on their energy meter is unlikely to have the inclination to do so.
2.4 Ensure tenants agree to prepay electricity in their lease agreements and make mention in the lease of the need to maintain credit in order to avoid self-disconnect.
2.5 If you are still concerned, as a landlord, you could add to the lease agreement that if a tenant is in a vulnerable situation they should approach the landlord for a landlord issue token (free Metro Code at the landlord’s expense).
Metro prepaid goes further to help tenants allowing for:
A. 24/7 Help Desk support
B. Low credit warning – red LED on the meter.
C. Emergency credit on the meter.
This overdraft feature is set at 10kWh.
This gives tenants the convenience of turning the meter back on temporarily while arrangements are made to top-up at a convenient time.
What is a “landlord top-up Metro Code” sometimes also known as a “free-issue Metro Code”?
This is a Metro Code generated at the request of the landlord for meter credit – from 1 kWh up to a maximum of 999 kWh.
A landlord might for example request a free issue to:
- Give tenants a set amount of free electricity every month
- Assist a vulnerable tenant
- Allow workmen refurbishing an empty apartment access to power
- Allow tenant moving from one unit to another to add credit already purchased to her new meter.
A landlord top-up Metro Code incurs a service fee of $6 incl VAT but no payment is levied for electricity and the landlord will not recover the cost of power used.
What if Metro increases their 12% fee?
Metro is unlikely to increase the fee unless, for example, card merchant fees/ interchange suddenly goes up a lot.
In other markets with scale Metro has reduced fees.
It doesn’t seem convenient for the tenant to buy a token at a store every time the meter credit is low. Why can’t they use their mobile phone to top up while at home?
Tenants can use a smart phone if they have a credit card or bank account debit card.
Is there any service fee for tenants when they top-up? How does Metro make money? Let me know the fixed costs or variable costs involved please.
There is no fixed fee or standing charge.
The meter is yours free and clear so:
1.
Let’s say you have a rental void in your ADU for 1 year.
You would pay Metro $0 in fees that year for that meter.
2.
Metro charges a service fee of 12% on top-ups.
The average top-up in an ADU would be about $15 so $1.80.
Isn’t this a lot? What if the tenants don’t want to pay?
Let’s unpack this:
2.1
Isn’t it a lot?
For this Metro operates a 12/7/365 contact centre, pays collection fees on cash-in-store at 7-Eleven, Walmart etc, debit/ credit card interchange and gateway fees, bank charges, charges to pay landlords and the costs to generate token “Metro Code” issues.
Independent research in a variety of markets has shown that on average prepay electricity usage falls by 15%, so with this in mind, the tenants may well, with prepay, save 3% after fees.
What if the tenants don’t want to pay the service fee?
Metro acts for landlords, if you wish to pay the service fees then our systems allow for a “landlord pays fees” option.
In this instance the tenant will pay zero fees but you will only recover 88% of the electricity cost of their usage after Metro fees.
Are Metro meters designed specifically for the US market?
Yes they are 120V, UL + ANSI certified
Would the landlord and tenants need to open a Metro account?
No, tenants have no need for a Metro account but do need to register for a PayNearMe barcode in order to top-up at CVS, 7-Eleven etc.
This is quick and efficient on our www.metroprepaid.com website.
Landlords need to register with Metro and agree to Metro Prepaid's terms and conditions.
This process is more detailed requiring:
Name
Contact details
Address of the property
Energy Company bill
Nominated bank account
Decision on payment of service fees
Acceptance of terms and conditions
Landlords can provide this information by clicking the Register Meter link at www.metroprepaid.com
or email details to help@metroprepaid.com
or call 571 933 8557