Ratio Utility Billing System (RUBS) is an allocation method for determining how much residents owe for utilities each month. Residents pay based on the number of occupants in their household, the square footage of the unit, or a variety of other unit-specific factors. The property management company or third-party biller performs the RUBS calculations and bills the residents.
How is RUBS Calculated?
With a Ratio Utility Billing System, utility charges may be calculated in several different ways:
Occupants per Unit
This calculation allocates charges based on the number of individuals who live in the unit. Water bills often follow this calculation, as more water is typically used when more people live in a unit.
Square Footage of Unit
This method calculates each bill based upon the unit’s square footage. Gas bills often follow this calculation, as larger units correlate with higher heating and cooling charges.
This calculation accounts for a unit’s total occupants and the square footage, with a 50/50 split. It’s reasonable to presume larger units with more people will result in higher utility consumption.
Many variables can result in higher utility bills, which must be compensated for with a fair multiplier. Units that have additional bathrooms will use more water, while units with fireplaces will use more gas. For instance, a washing machine that uses 30% more water than the average washing machine may be assigned a factor of 1.3x per month.
Not sure which calculation method would be best for your properties? Our utility billing experts can give you their advice.Get a Consultation
RUBS System Management
When multifamily property managers outsource RUBS calculations and billing to PayLease, we do more than simply send out bills to residents. We determine how much residents owe and integrate payment data into your property management software, ending manual data entry and improving data visibility. Property managers can use our resident billing system to effortlessly track resident charges and recovery through their accounting software without spending time and manpower doing all the calculations in-house. Plus, all of our calculations are supported by a Quality Control Group dedicated to monitoring your recovery and utility regulations to keep you in compliance.
Convergent Billing with RUBS
Multifamily communities can maximize convenience and streamline payments by combining RUBS calculations with all-in-one monthly statements. Known as convergent billing, residents can get a breakdown of all of their charges in one convenient statement—gas, water, electric, rent, garbage fees, parking, pet charges, and late fees. Residents conveniently pay all of their monthly charges with one transaction through the PayLease system. As a result, property managers see more on-time payments and experience improved Net Operating Income by recouping utility expenses.
You’ll also get the option to include custom messages on each statement that you can use to communicate important announcements or reminders. Using PayLease for RUBS and Convergent Billing means you’ll recoup utility costs more equitably while alleviating complexities and hassles on the backend.
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If you’re on the fence about moving away from a “utilities included” model, or are wondering how to implement a resident billing program at your property, this ebook is for you. Geared towards multifamily property managers, this guide breaks down everything you need to know about recouping utility costs.Download the e-Book