SOUNDS GOOD IN THEORY AND
LOOKS GOOD ON PAPER, BUT……!
By
Darlys
Walker
Published
August 15, 2012
Yes,
there is always a BUT! It
is correct that studies show water usage decreases when
sub-meters are installed, which benefits the Association as a
whole, and sub-metering can be done relatively inexpensively. In
theory, this would financially benefit the Association.
BUT…
And
here it is, a number of our Associations have made the decision,
as allowed via their documents, to go to sub-meters. They
utilize a company to bill out the actual billing, and yes the
billing is decreased. HOWEVER, delinquency INCREASES!
This creates more of a financial hardship for the
Association!
The
problem is that the community continues to be on a “master
meter”, which is billed to and paid by the Association.
Adding a sub-meter system will require the homeowners to
now make two payments monthly as opposed to one.
The billing company sends out the bills to the
Homeowners. This typically adds an administrative cost of $3-$6
per month to each bill. Billing
is typically 45 days behind and the average delinquency on these
sub meter accounts runs approximately 25% or more.
There
is little recourse for nonpayment.
Typically, there is no allowance for disconnecting water
service for nonpayment, and most of our boards soon regret their
decision to move forward with the program.
No,
it is not fair for a homeowner to pay more than their fair
share, but historically we hear this complaint about almost all
of the services in an Association.
For instance, why should I have to pay for the fitness
center, I don’t work out? Or I don’t use the pool and
clubhouse, why should I have to pay for those expenses? BUT,
when a homeowner purchased their unit they hopefully read the
documents and understood the financial commitment they were
making to all other homeowners as part of the Association.
As
a CAM, we would suggest working with the Board and water company
to implement ways of saving water and take a proactive
management approach to decreasing usages as opposed to imposing
sub-meters. I am interested in hearing your thoughts and if you
have seen the addition of sub-meters successfully meet the
expectations of the Boards.
