If you own apartment units or some other type of multifamily units, then you have probably heard of ratio utility billing. Ratio Utility Billing System or RUBS is a method used to bill tenants of multifamily housing by taking the total amount and dividing it among the units based on the number of occupants, size of the unit, or some other factor.
A Ratio Utility Billing System is a service offered to owners and managers of multi-unit housing. This type of allocation billing is appropriate for apartments, condominiums, manufactured home rental communities, marinas, and strip malls.
There are specific rules and regulations concerning what must be disclosed to renters. For example, how renters can dispute a bill, how the allocation is calculated, how to verify a utility bill, a clear description of the allocation method, when bills are issued, when payment is due, and the average monthly bill for tenants.
RUBS encourage a sense of community among tenants in a complex. Both the EPA and the National Apartment Association have conducted studies which suggest that utility consumption decreases by 5% to 40% among renters when a RUBS program is announced and implemented.
A Ratio Utility Billing System does measure the exact amount of utility usage. However, a 1200 square foot apartment will have more utility usage than a 750 square foot apartment. Therefore, the utility billed for a 1200 square foot apartment would be more than the 750 square foot apartment.
Each state and municipality has their own rules for allocated billing. Property owners are required to register with the Public Utility Commission of their respective state.
Utility management can be a headache. A Ratio Utility Billing System can remove that headache and ensure that property owners remain in compliance and tenants are properly billed for their utilities.