Billing water by meter readings for rental units

Flat water charges feel unfair to the tenant who lives alone and too cheap for the family of six. If your units have sub-meters, billing by actual consumption is fairer and usually ends complaints about water bills.

How metered billing works

1. Read each unit's meter on roughly the same day each month.
2. Consumption = current reading − previous reading.
3. Charge = consumption × your price per unit (for example KES 150 per unit).
4. Add the charge to the next rent invoice so the tenant pays once.

Setting your price

Start from your water company bill: divide the total by the total units consumed across the building, then add a fair margin for pumping, storage and losses if your agreement allows it. Write the price into the tenancy agreement and keep it the same for everyone in the building.

Avoiding disputes

• Record both the previous and current readings, not just the difference.
• Take readings on the same day for the whole building.
• Show the readings on the invoice so the tenant can check their own meter.
• Investigate any sudden jump before billing it: it is often a leak.

Fixed charges

Garbage collection, security and service charges are usually the same every month. Set them once per lease and they are added to every invoice automatically.