When submetering at a property becomes complicated or impossible due to plumbing configurations, property managers can look into Ratio Utility Billing System (RUBS) as another method to recover utility costs.
What is RUBS?
Ratio Utility Billing System is a billing practice where property managers can recover utility costs through allotting fees based on a unit’s set up (such as square footage, number of bedrooms and bathrooms, occupants, etc.).
This allows for residents to then be billed monthly based on their calculated consumption.
What are the benefits?
- Fast Implementation
- Increased Cash Flow
- Consumption Awareness
- Decreased Operating Costs
- Individual Billing
- ‘User-pay’ System
How does it work?
The allocation starts with a copy of the property’s utility bill using the dollar amount of the consumption period that is to be billed. A predetermined common area allowance percentage is deducted to give us the billable figure to allocate.
Each unit is assigned an occupant factor that is used to determine that units share of the utility bill.