Arizona Submetering Laws

Arizona allows landlords and property managers to install submetering systems and bill residents for individualized utility usage.

Residential water, electric and gas submetering, as well as RUBS billing, are all legal in Arizona. Sewer and trash billing can also be done individually. Lease agreements must be explicit about payments and obligations.

Arizona Revised Statutes Title 33. Property § 33-1314.01 states that:

“A landlord may charge separately for gas, water, wastewater, solid waste removal or electricity by installing a submetering system or by allocating the charges separately through a ratio utility billing system.”

Administrative fees collected for submetering or utility billing in Arizona must “actual administrative costs only.  The landlord shall not impose any additional charges.”

RUBS billing may be calculated by one or more of these criteria:

• Per tenant.
• Proportionately by livable square footage.
• Per type of unit.
• Per number of water fixtures.
• For water and wastewater, by use of an individually submetered hot water usage measure for the tenant’s dwelling unit.
• Any other method that fairly allocates the charges and that is described in the tenant’s rental agreement.

Starting Submetering in Arizona

It’s easy to implement submetering at multifamily buildings and other property types in Arizona. It’s typically best to contact a utility billing and consulting firm like Synergy to ensure 100% compliance and effectiveness.

Submeters, with individual meters for each unit, can be used in existing buildings or new construction in Arizona. RUBS billing, which divides utility costs according to an industry-accepted formula, is also possible.

Steps to Implement Submetering in Arizona

Implementing submetering and outsourcing multifamily utility billing is a surprisingly quick process.

• First contact a utility billing specialist like Synergy. You can also request a quick quote on our website.
• We’ll hold an introductory call. If it’s a fit, we’ll then review the site in person (if necessary).
• Our consultants will determine the best mix of service offerings and technology for you, and deliver a formal proposal.
• We then work with industry-leading installers to install submeters and ensure everything is working correctly.
• We handle all aspects of meter reading, resident billing and collections on your behalf.

Utility submetering and outsourced utility billing in Arizona can be implemented in as little as a few weeks, at no net cost to the property owner or manager.