Submetering

Submetering is the practice of installing individual water, electric, or gas meters on each lot so the park operator can charge each resident for that resident's actual usage rather than allocating the master-meter bill across all residents. Submetering is widely used in mobile home parks because it solves a fairness problem (residents who use more pay more) and an economic problem (it removes the operator's incentive to absorb residents' usage). Most states require disclosure of submetering arrangements in the lease and may regulate the markup operators can charge above the cost of the utility itself. Water submetering is the most common; electric submetering is more capital-intensive and less common.