Tenant Billing

Tenant billing, also known as utility billing or sub-metering, is the process of accurately measuring and allocating utility consumption costs (such as electricity, water, gas, or heating) to individual tenants or occupants within a multi-tenant property or building. This practice is commonly used in apartment buildings, condominiums, commercial buildings, and other shared spaces where tenants are responsible for their individual utility usage.

Each tenant's space is equipped with individual utility meters (sub-meters) that measure the consumption of specific utilities, such as electricity, water, or gas. These sub-meters provide accurate readings for each tenant's actual usage. Each tenant's space is equipped with individual utility meters (sub-meters) that measure the consumption of specific utilities, such as electricity, water, or gas. These sub-meters provide accurate readings for each tenant's actual usage.

The building management or property management company collects regular readings from the sub-meters, typically on a monthly basis. These readings represent the consumption of utilities for each tenant during that specific billing period. Using the data collected from the sub-meters, the property management calculates the total utility consumption for each tenant. The calculations are based on the difference between the current and previous meter readings for each utility. The utility rates, including electricity, water, gas, or heating rates, are typically set by the local utility providers or specified in the lease agreements. Based on the utility consumption and the applicable rates, the property management calculates the utility costs for each tenant. The property management issues individual billing statements or invoices to each tenant, detailing their utility consumption, the corresponding rates, and the total amount owed.