Shared utilities can be one of the most frustrating expenses in multifamily—especially in older buildings without individual submeters. When water, sewer, and trash costs rise, owners are stuck choosing between absorbing the cost or raising rent.
RUBS (Ratio Utility Billing System) is a practical middle path: allocate shared utility costs across residents using a transparent formula—without expensive retrofits.
What Is RUBS?
RUBS divides utility expenses (commonly water, sewer, trash—and sometimes gas/electric) among tenants based on usage proxies such as:
- number of occupants
- bedroom count
- square footage
- or a blended ratio
Instead of a flat split (often unfair) or owner-paid utilities (often expensive), RUBS creates a documented, consistent approach.
When RUBS Makes Sense in Orange County
- older multifamily properties without submeters
- owner-paid utilities that materially impact NOI
- buildings where conservation matters
- owners who want transparent, consistent billing
Benefits
- improved cost recovery and more predictable operating costs
- encourages conservation because residents feel the impact
- avoids expensive metering retrofits
- more transparency than “utilities included” pricing drift
Implementation Checklist
- Review your utility bills and decide what to allocate
- Choose a simple formula residents can understand
- Update lease language and disclosures
- Communicate early with residents (with examples)
- Keep billing records organized (bills + formula + charges)
Common Mistakes to Avoid
- launching RUBS with weak communication
- using an overly complex formula
- applying the formula inconsistently
- missing documentation of bills and calculations
Implementing RUBS Cleanly
Want Help Implementing RUBS Cleanly?
