Water Submeter Addendum

Water Submeter Addendum: A Must-Have for Property Owners Using Submetering

As a property owner, you know that managing costs is essential to profitability. Water expenses can be one of the most frustrating variables, especially when tenants have no incentive to conserve. That’s why water submetering has become the go-to solution for owners who want to reduce waste, recoup utility costs, and improve transparency.

But installing submeters is only part of the process. To do it properly, you need a Water Submeter Addendum—a simple lease amendment that documents the change and protects your rights.

This article explains what a water submeter addendum is, why it matters, and how you can use our template to put one in place. If you’re looking for a deeper dive into submetering equipment, billing options, or ROI, you’ll also find a link to our Ultimate Guide to Water Submetering, created by the team at SimpleSUB Water.

What Is a Water Submeter Addendum?

A water submeter addendum is a legal document that updates your existing lease to reflect usage-based water billing. If you’ve installed submeters on your property—or plan to soon—this is the document that gives you the legal right to charge tenants for their actual water use.

The addendum outlines key details like the date billing will begin, how charges will be calculated, and how payments will be handled. It also affirms that the rest of the lease remains in full effect. In short, it puts everything in writing so there are no surprises.

If you’re working with a solution like SimpleSUB Water, which provides over-the-pipe submeters and simple billing tools, this addendum ensures your legal foundation matches the technology you’re using.

Why You Need a Submetering Addendum

The benefits of submetering are well documented. You reduce your operating expenses, encourage conservation, and often increase tenant satisfaction by shifting from flat-rate or RUBS-based billing to usage-based billing. But the legal foundation is just as important. Here is why a submetering lease addendum matters:

• It provides legal clarity on how water charges will be handled.
• It separates utility billing from rent, allowing more flexibility in collections.
• It ensures tenants understand their responsibility to pay for what they use.
• It supports your ability to use a billing provider or software system.
• It minimizes the risk of disagreements down the road.
  

Whether you’re managing a single multifamily building or an entire portfolio, having a signed addendum in place is a smart move. If you’re using SimpleSUB Water, the platform makes it easy to track usage by unit and calculate bills, but this document is what makes it official in the eyes of the lease.

What to Include in a Water Submeter Addendum

A strong addendum should be concise, clear, and legally sound. It should also be easy to customize for your property and billing method. Based on years of experience working with landlords and submetering providers, here are the key elements every water submeter addendum should include:

• The date the submeter was or will be installed
• The date usage-based billing begins
• How charges are calculated, including any service or administrative fees
• The billing schedule and how long tenants have to pay
• Language confirming that failure to pay the water bill is treated as a lease violation
• Permission to use a third-party billing provider, if applicable
• A clause granting access to the submeter for maintenance or meter reading
• A statement affirming that all other terms of the lease remain in effect
• A disclaimer noting that the parties are responsible for compliance with local law
  

We built our downloadable template with all of these in mind. It can be used across most U.S. jurisdictions and adapted as needed.

Watch Out for Local and State Regulations

As you may know, utility billing laws are not the same in every city or state. In fact, submetering rules vary widely, and they’re changing in many markets.

Some states:

• Cap how much you can charge in administrative fees
• Require very specific disclosures in lease documents
• Have limitations on billing methods like RUBS
• Mandate that submeters be certified or inspected
  

That’s why we include a legal disclaimer in our template. While the addendum provides the structure you need, it’s up to you to confirm it aligns with the laws in your state or city. When in doubt, consult a local attorney or property law expert.

If you’re already using SimpleSUB Water, our team is happy to point you to helpful resources or state-specific guides that make compliance easier.

How to Use the Addendum Template

Once you have the template in hand, using it is a simple process. Here are the basic steps:

1. Confirm that your leases need updating and that your meters are installed or scheduled.
2. Customize the template with your property’s details, including the start date and billing process.
3. Review the document with your tenant and answer any questions they may have.
4. Have both parties sign and date the addendum. Store a copy with the original lease.
5. Begin billing for water on the agreed start date.
   

If you work with a third-party billing provider or use SimpleSUB’s built-in billing tools, be sure to coordinate so your invoicing schedule matches what’s outlined in the lease.

Need More Help? Read the Ultimate Guide

If you’re still exploring whether submetering makes sense for your property—or want help choosing the right system—we’ve put together a full resource for you.

Our Ultimate Guide to Water Submetering, written by the team at SimpleSUB Water, walks you through:

• How submetering compares to RUBS and other billing methods
• What equipment you’ll need and how to install it
• How much you can save based on your property type
• What legal and regulatory issues you need to know
• Tools for billing, tenant communication, and maintenance
  

It’s built for property owners who want to take control of water costs using practical, field-tested advice.

Final Thoughts

As a property owner, you have a lot on your plate. Managing water costs should not be another headache. Submetering gives you visibility, fairness, and cost control—especially when paired with the right technology and legal framework. A water submeter addendum makes that possible. It gives you a clean, enforceable way to bring tenants on board and start billing based on real usage.

Our free template is ready for you to download and customize today.

If you’re planning to expand your submetering program or just want to streamline your process, learn more at SimpleSUBWater.com or explore our Ultimate Guide to Water Submetering for more hands-on advice.

‍

‍