Shared utilities are a common problem in multifamily, especially in older properties without individual submeters. When water, sewer, and trash costs rise, owners either absorb the costs or raise rents to cover the difference.
RUBS (Ratio Utility Billing System) allocates shared utility costs using a documented formula—without expensive retrofits.
What Is RUBS?
RUBS divides utility expenses—commonly water, sewer, trash, and sometimes gas/electric—among residents using proxies like occupants, bedrooms, square footage, or a blended ratio.
When RUBS Makes Sense
- Older multifamily properties without submeters
- Owner-paid utilities that materially impact NOI
- Buildings with meaningful common-area water usage
- Owners who want transparent cost allocation residents can understand
Implementation Checklist
- Choose which utilities to allocate and review historical bills
- Select a simple formula and document it clearly
- Update lease language and communicate early with examples
- Keep bills and calculations organized for consistency
Common Mistakes
- Launching without clear communication
- Using overly complex formulas
- Applying inconsistently across units
- Not keeping documentation of bills and calculations
Want a Realistic Rent Estimate? Choose Your County
For local rent estimates, service areas, and next steps, choose your county. If you own rentals in multiple counties, schedule one call and we’ll route you internally.
