The big benefits of individual water meters in Sectional Title

With the steep rises in municipal tariffs this year, water usage has become a hot topic in Sectional Title (ST) complexes, where the benefits of individual water meters – and especially pre-paid meters – are increasingly being recognised, says Andrew Schaefer, MD of leading property management company Trafalgar. 

However, trustees need to know about the different procedures they need to follow if they decide to install normal meters or pre-paid water meters, he notes.

The top five advantages of individual metering include:

1. Fair billing. “Separate meters enable the consumption of water by each unit in the complex to be accurately recorded, in the same way that individual electricity meters do. This ensures that residents pay only for what they consume themselves, rather than a share of the overall cost of water for the complex. It also creates transparency in billing and prevents many misunderstandings and disputes between residents and the body corporate (and between landlords and tenants) over water charges,” says Schaefer.
2. Water conservation. “When residents can see what their own water consumption is, and what it costs, it generally encourages more mindful usage and the adoption of water-saving measures that lead to reduced overall consumption in the complex. This supports sustainability and eco-living goals and can enhance the complex’s reputation as a responsible community.”
3. Leak detection. He says that separate meters can also aid in the early detection of any water leaks in individual units. This reduces water wastage and prevents long-term damage that can result from undetected leaks in a shared system.
4. Better budgeting. “Separate meters also enable ST trustees and managing agents to better predict and manage the annual water expenses of the complex, which will now be incurred only for usage on the common property. They won’t need to worry about getting enormous municipal water bills due to excessive water usage by one or more residents and will be able to plan better for maintenance and upgrades.”
5. Lower levies. “Residents of ST complexes where all units have separate water and electricity meters should enjoy lower levies – or at least smaller levy increases, as the body corporate budget will only need to cover the usage of these utilities on common property,” Schaefer says. 

Increased property value. “Prospective buyers, as well as tenants, are increasingly seeking out ST properties with separate meters (and especially pre-paid meters) these days because they want to be able to monitor their own water and electricity usage and not worry about subsidising any excessive use by other residents. This makes units in complexes with separate metering much more marketable.

“Consequently, we urge the trustees of any complex that doesn’t already have separate water meters to consider installing them without delay.”

Should they just wish to switch to separate municipal meters, he notes, they will only need an ordinary resolution of members to request the installation of these meters to measure the supply of water to individual sections, exclusive use areas, and the common property, he says.

“This is provided for in Prescribed Management Rule 29 of the Sectional Title Schemes Management Act (STSMA) and simply requires a written request from each registered owner in the complex to proceed.”

“To get pre-paid water meters installed, though, the trustees will need to secure a special resolution, by giving all owners in the complex at least 60 days’ notice of their intention and a detailed breakdown of the costs associated with the proposal over the next three years.

“Section 1 of the STSMA provides that this will then need to be agreed to, in writing, by owners holding at least 75%, by value and number, of all votes in the scheme. Alternatively, the special resolution will need to be approved by the same percentage of owners at a special general meeting, held after 30 days’ notice.”