RUBS vs. Submetering
Hi Everyone. Hoping for a bit of guidance. Have two parks with a total of 53 lots. Just acquired both and they are in the Northeast. The state they are in allow RUBS, but we are also considering submetering. This may have been discussed before, but curious if anyone in the group has a recommendation. My thoughts are as follows:
1. Submetering: (+) Low (no) management, tenants know their exact use, potentially easier to identify leaks etc, positive exit feature for potential buyers. (-) Capital costs of roughly 20k.
2. RUBS (+) Quick implementation, consolidated billing. (-) Additional fees for tenants, additional management (I have a great manager btw), incomplete collections (estimating 70% payment rate)
So...
1. Is the above assessment accurate?
2. What has been successful for others?
3. If I have the capital is submetering worth the investment?
4. Any advice on RUBS companies, curious about others experiences?
Thanks in advance. John