Two recent incidents have prompted Straton Prepaid to expand on this subject.
The first one was a personal wake-up call:
I recently renovated my flatlet and installed a new Sub DB with new wiring. Unfortunately, the existing prepaid meter was ‘tossed’ out in the rubble.
It took me a few months to upgrade my main distribution board and re-connect my manual meter reading the flatlet consumption. Yes, the one is a fail safe for the other!
When I finally got around to reading my manual meter I received a bit of a shock! My tenant has been consuming just over R2000 in electricity per month, for which I have been paying.
A new prepaid electricity meter has been installed and recoveries have begun again.
Now – the price to the consumer for supply and installation to a flatlet with a sub distribution board that complies is under R2000.00
So – for less than one month’s worth of electricity I will now recover my tenant’s usage for years to come (or, until the next renovation).
The second was from a recent quotation:
The client owns a building in an industrial area in Gqeberha.
At present the tenant pays R12000 per month in rental.
The rental includes electricity and water.
The municipal electricity bill to the owner is just over R13000 per month.
Factor in water consumption, rates, maintenance, estate agent commission etc and the owner is on a slippery path to nowhere.
Three phase Prepaid Electricity Meter:
Sure, the electricity supply is three phase to the building and installation will cost a tad more but certainly NOT R13000.
So, the client could save R13000 per month for years just by spending half of that amount on the supply and installation of a 3 Phase Prepaid Electricity Meter. A MAGNIFICENT ROI for any landlord.
Presently we install the Hexing HXE310-P (PLC) – a three-phase, 100A, split-type prepayment meter commonly used for smart electricity metering. It operates with a Customer Interface Unit (CIU) that communicates via Power Line Communication (PLC).
Biggest Bang for Your Buck:
If you have a tenant downstream of your main distribution board then it is a no brainer to install a Prepaid Electricity meter – your retirement nest egg will thank you.
What about rental increases?
We do come across many owners of property who have never factored in tenants paying for their own electricity and water consumption.
Obviously landlords do not want to chase good paying tenants away so we suggest that owners engage with tenants and maybe tell them that a prepaid meter will be installed and the normal rental increase will be waived for the next 12 months.
OR, just be honest with your tenant and play open cards with regards to just how expensive electricity and water usage has become on the property.
At the end of the day landlords have seen how ‘electricity bracket creep’ is eroding their profitability and should be taking active early steps to recover the cost of utilities.
The user must pay for their usage.
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First Published here: MyPR.co.za
Did You Know?
- Cradock was founded in 1813 on the banks of the Great Fish River to cater for the migratory farmers who settled in this ruggedly beautiful area with its excellent grazing, abundant water and healthy climate.
- Cradock was officially renamed Nxuba on 26 August 2022. This change was officially gazetted by the Minister of Sport, Arts and Culture, Nathi Mthethwa, and it was part of a broader effort to rename towns with colonial or apartheid legacies in the Eastern Cape.
- Home to an actual Harry Potter’s grave: A British soldier with the name Harry Potter, who died during the South African War (Anglo-Boer War), is buried in the Cradock cemetery. His grave was discovered in 2002, long before the fictional character became a global phenomenon.
- Location of the last surrender of arms in the South African War: Cradock was the final place in South Africa where arms were officially laid down at the end of the South African War, with the event occurring four days after the Peace of Vereeniging was signed in 1902.
- Birthplace of Afrikaans publication: The first-ever article published in the Afrikaans language appeared in the local newspaper, the Cradock News, on December 4, 1868. This was a report on the separation of the Eastern Cape from the Western Cape, and the paper achieved the largest circulation in the country at the time.
- Second oldest cricket ground and library in South Africa: Cradock’s cricket ground and library are both the second oldest in the entire country, a testament to the town’s early establishment and development of civic amenities.
- Host to a total solar eclipse viewing by a Prime Minister: In 1942, the South African statesman and Prime Minister Jan Smuts came specifically to Cradock to witness a total eclipse of the sun, as the town was the best location for viewing the celestial event.