If you own or manage a property, you're always on the lookout for ways to simplify building operations and improve the resident experience. One method that has gained popularity is RUBS utility billing. In this article, we'll delve into what RUBS utility billing is, how it works, and help you determine if it's the right choice for your property.
What is RUBS Utility Billing?
RUBS stands for 'Ratio Utility Billing System.' It involves dividing the building-wide cost of a utility using ratios that accurately reflect each tenant's usage. This cost-effective method allows property managers to bill residents for the utilities they consume without relying on submeters. Instead, a mathematical formula is used to differentiate the billing based on factors such as the number of residents in an apartment or the presence of appliances.
With RUBS utility billing, you can bill residents for electricity, water, trash, sewage, and gas. While submeters are the most accurate way to determine individual usage, they are not always feasible or cost-effective to install. This is where RUBS comes in as an efficient alternative for commercial and multifamily property managers.
How Does RUBS Utility Billing Work?
RUBS utility billing takes into account the unique features of each apartment unit when calculating utility bills. Factors such as the number of residents, bedrooms, bathrooms, water fixtures, appliances, and square footage all influence the bill. Property managers have the flexibility to group areas together for billing purposes, ensuring that each tenant pays a fair share.
Is RUBS Utility Billing Right for Your Property?
RUBS utility billing is an excellent option if you want to increase your property's net operating income by accurately billing residents. It eliminates the need for expensive submeter installations while ensuring fair distribution of utility costs. Before implementing RUBS, review your tenants' lease agreements to ensure it's permissible. Additionally, be aware of any local regulations that may affect your billing practices.
Technology to Simplify RUBS Utility Billing
To streamline the billing process, investing in property management software specifically designed for RUBS utility billing is highly recommended. This software offers features such as paperless accounting, invoice generation, and automated monthly invoice distribution. Alternatively, you can work with a RUBS utility billing service provider who can analyze your property and assist with formula accuracy and legal compliance. They will also adapt the formula as your property evolves with new residents, appliances, and fixtures.
In Conclusion
RUBS utility billing is an effective method for accurately billing residents for utilities, satisfying property managers across the country. It offers a cost-effective solution for those who cannot install submeters but still want to increase their building's income and recover utility costs. Consider implementing RUBS utility billing by utilizing property management software or partnering with a RUBS service provider to simplify the process.