Electric Meters for ADU Homes: An Owner's Experience
Electric meters for ADU homes are a way to accurately track individual energy usage and allocate costs fairly. However, while these landlord meters can bring many benefits, they can also pose challenges for owners and tenants alike.
In this article, we will explore the experiences of Jim Haliburton, who installed Metro Prepaid electric sub meters in his properties, sharing insights and lessons learned along the way. He is an experienced landlord with over 1000 tenants.
Why did you fit prepaid electric meters for ADUs?
About 25 years ago I started fitting prepaid meters. The reason for this was to stop tenants abusing the supply of free, inclusive electricity. I found that by fitting prepay meters in the ADU the electric used decreased by up to 50%. Tenants’ behaviour changed overnight. Before fitting prepaid meters, when I went into any of my ADUs, many of the tenants would leave everything in their rooms switched on. After prepay meters were fitted, they would leave nothing switched on.
There is also the benefit of increasing the income from the ADU. I find that the meters not only reduced the cost of electric, but their income from the prepaid meters substantially reduced (and can even eliminate) the cost of providing electricity. It should also be appreciated that by reducing energy usage, you are doing your bit towards saving the planet.
Why are you changing to Metro Prepaid electric sub meters?
I have recently started to fit Metro Prepaid meters because they are cheap compared to conventional prepay meters and very convenient for our tenants to use. Tenants can top up their meters online, by phone or from shops that offer PayPoint facilities. They also provide us with a monthly account of payments made.
So far, apart from running extension leads to the communal supplies, we have not found any way staff or tenants can defraud us using Metro Prepaid electric sub meters. The meters are largely tamperproof. With the card meters, cash is often involved, if card meter cards go missing and the cards can be sourced from other suppliers. I have even had an ex-employee selling electric cards to my tenants at a discount.
Are properties with prepaid electric meters harder to let?
I find my tenants prefer not to have prepaid electric meters fitted into their rooms. They would rather pay me $12,65 a week more in rent. We all have ideas, concepts or beliefs in our head which are difficult to shift.
What I do is share with other landlords my experience which is that the cost of electricity to the landlord almost halves when prepaid meters are fitted to each tenant’s room. Why? Because tenants change their behaviour, the tenant is now directly paying for the electricity they use. Instead of many tenants leaving everything switched on, everything is switched off in their room. It stops tenants from abusing the free supply of electric and you are also doing your bit to save the planet.
The greenest energy is the energy not used. I introduced prepaid meters to stop tenants leaving electric heaters running 24/7 in their rooms and leaving windows wide open because, as one said to me, “They like fresh air and they also like to be warm!”. I was not initially interested in the income obtained from prepaid electric meters and I would give away the electric cards almost like confetti. (I now use online methods of payment with prepaid meters I use which makes the administration and collecting payment much easier). I was just happy to save about 50% on my electric bill.
The massive increase in electric prices has changed things. Landlords have found their electric bills have increased from about 15c per kilowatt to 75c kilowatt. An increase of five times! I calculate the average tenant’s electric usage will increase by $12,65 per week. This means that a six-bedroom property will cost at least $75,90 a week more to operate just on the electric never mind the gas!
NB from observation I find there is little variation in the utility costs between a three room and eight room property. This could be rationalized on the basis that a 3 or 8 room property may not vary that much in size, so the number of occupants makes little difference. The other issue I have is utility costs can vary enormously between ADUs, I can find little consistency, only an average.
I note you mention that your tenants would rather pay $12,65 a week more in rent than to have prepay electric meters. I agree, I calculate the average tenant’s electric cost will increase by about $12,65 per week. This increase in cost will destroy many ADU businesses unless something is done to control the cost. On top of this is the massive increase in gas prices. To cover the increased cost in gas and electric I guess estimates that the landlord will have to charge their tenants and extra $25,30 a week.
If the tenants are prepared to pay this then all is well and good. My experience is that few tenants will or can pay and I find using prepaid meters the best alternative. The use of prepaid electric meters as i mentioned above is also environmentally beneficial and more fairly distributes the cost of electricity between the tenants who use it and those who do not.
Click here to buy an electric meter for ADUs. Our electric submeters are also available at local electrical wholesalers across the country.