Real Estate Agent · Thermopolis, WY · Member since 2014 · 20 posts · 1 vote
Has anyone use RUBS (ratio utility billing system) on a small multifamily property (say 10 units or less)? Is it cost effective for smaller units? What are your thoughts/experiences? Thanks!
Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
10y
Ryan,
RUBS is used in about every 100+ unit apartment building I look at in Texas and if its not used, its one of the first value add things we look at. It's not illegal. It's not unprofessional. You have to work w/the utility companies so why would that be illegal ? What it does do is put the burden on the user to be more energy efficient. My mentor once told me that when he really got sold on the RUBS system is when he went into one of his units in the heat of the summer in Texas and the guy had the AC on 60d sitting on the couch w/a blanket. Right then and there he realized all bills paid was not only an economic burden but it did not put the incentive in the right place, w/the user and was not good for the environment. After he implemented the RUBS, he actually reduced the rent a bit to enable the user to adjust to the new extra billing. It has nothing to do w/being a slumlord or a bad landlord. It's all about empowering the user and if one of the residents is not energy efficient, why should everybody pay for it in higher rents for all.
If you PM me, I can send you a sample XL spreadsheet that you can customize that we use to apportion the expenses among the Tenants .. Works equally well for either Gas or Water.
If you PM me, I can send you a sample XL spreadsheet that you can customize that we use to apportion the expenses among the Tenants .. Works equally well for either Gas or Water.
@Brooklyn R. would you mind also send me your sample XL spreadsheet? I'm considering a multi family deal and one of the upside is to implement water RUBS ..
Rental Property Investor · Tyler, TX · Member since 2016 · 198 posts · 89 votes
8y
@Brandon Yuan make sure to visit the Texas PUC site too for guidance on implementation. This pertains to water and sewer. We are using the same guidance for implementing RUBS for gas. After contacting the Railroad Commission, who govern use of natural gas in Texas, I was informed they don’t have guidelines. We believe it would be prudent to follow the specific disclosures, timelines, and guidance the utility commission has for water/sewer with gas too. Let me know if you need anything from us to help you.
Houston, TX · Member since 2016 · 38 posts · 9 votes
8y
Thanks @Shea Spinelli! Yep I already went on to Texas PUC site. I'll be doing a bit further research first on the topic, then I may have some follow-up questions and I'd love to get your input.
Architect · Seattle, WA · Member since 2017 · 160 posts · 81 votes
8y
@Ken Martin I've also been looking for this, from my experience the larger national companies aren't interested in smaller properties, we are ballparking utilities based on historical info and charging a monthly fee which we will adjust annually to make sure we are recouping that cost. If you do end up finding a local company that offers this for smaller buildings I'd be interested in working with them as well. There's always the traditional sub-metering option if you are going in and doing some extensive work to the property as well but I've found that to be prohibitively expensive on my properties so far.
Rental Property Investor · Brooklyn, NY · Member since 2013 · 272 posts · 165 votes
8y
Submetering is waaaay too expensive... Forget it!
Just RUBS it yourself, using a relatively simple RUBS spreadsheet and open & transparent billing to your (new) Tenants. (Make sure a thorough discussion of your RUBS billing is included in your new Leases).
@David Edwards@Ken Martin I found the same thing! Check out Submeter Solutions out of Washington. www.submetersolutions.com. They gave us a quote to do water and gas for roughly 7k. Obviously, we'll still have labor costs, but they were helpful.
We have one more duplex to complete separation on for electricity and all electrical costs will be the tenants responsibility. Then it's on to the other utilities.
Ultimately, we are probably going to go the route @Michael G. suggests with RUBS. Seems more cost effective.
Good luck! As long as you duly amend your Leases, properly manage your Tenants' expectations, and send transparent statements, you'll have no problems (and wonder why you didn't do it earlier!)
Specialist · "We're here to answer your sub-metering questions" · Member since 2017 · 17 posts · 5 votes
7y
RUBs are simple, (billing W&S based on number of occupants, or fixtures, or sq. footage). RUBs are not based on consumption, therefor tenants/residents lack positive reinforcement (lower overall rental expense) to conserve water or even report a cycling toilet. Some states do not allow RUBs due to the inherit unfairness of the allocation of the apartments' W&S expenses .
Although sometimes not economically feasible in older properties, water sub-metering is practically unanimously accepted through the US. Independently documented saving in water and sewer use is 25 to 35% is the normal. With sub-metering a owner will: Quickly identify water leaks; Promote common sense water conservation; Mitigate catastrophic plumbing events; Lower their tenants' over all rental expenses.
All agreed, except that after we implemented RUBS Water billing, we witnessed Water usage in a 3-Family we manage drop 35%. I believe the key to success are the constant reminders to tenants to conserve water (and thus, save money)
Real Estate Agent · Cleveland, OH · Member since 2016 · 58 posts · 9 votes
7y
Synergyutilitybilling.com
Not cost effective for small multi as I believe they require a monthly minimum. Been in business 10+ years and servicing properties all over the country.
Rental Property Investor · Berthoud, CO · Member since 2018 · 20 posts · 8 votes
7y
@Michael G. & @Daniel Helton I am about to take on a new to me older multifamily property (4 plex). I am curious how you handle the utility bill back process with RUBS. I am an engineer so the math for calculating what is due based on sqft and occupancy isn't a challenge. However, I can't quite figure out how to do the bill back.
I assume, I get the utility bill on lets say the 5th. Then I do the math and send the bill to the tenants on the 6th. From there do you treat the utility bill like rent? Due on the ___ of every month with a grace period and then start charging late fees? I know this is getting into some state specifics (I'm in Nebraska) but It would be good to know what is done by you folks so I know how to talk it over with the attorney. Thoughts?
Rental Property Investor · Berthoud, CO · Member since 2018 · 20 posts · 8 votes
7y
Thanks @Daniel Helton what a fast reply. I really appreciate the explanation of RUBS as being considered as additional rent. I'll chat with a local lawyer and see what they think.
We always fully pay the Utility bills as soon as they become due, and then add the pro-rata cost to each tenants' monthly rent bill as "Added Rent." Added rent is treated exactly like normal rent.
If you PM Me, ill send you a sample spreadsheet we use.
Rental Property Investor · San Francisco, CA · Member since 2016 · 215 posts · 42 votes
7y
@Michael G. - can you clarify how you implement RUBS with existing tenants, especially ones that have been in the building for years? Do you have them sign new leases with the RUBS language included?
Yes. We wait until their existing lease expires, and then respectfully explain that, with the new Lease, if they wish to stay, they'll have to agree to pay for what they use. It hasn't been an issue yet.
Rental Property Investor · Brooklyn, NY · Member since 2013 · 272 posts · 165 votes
5y
I use RUBS water billing (w/o submeters) for ALL of my Properties. Been doing it for over 10 years! (Best move I ever made!) Water usage went down 40% after we implemented RUBS...
Don't shouldn't ALL Landlords did this? It's a no-brainer...
Hi there - I have a duplex that is on single water and electric/gas meter. Im planning to start rentals in the next month and use RUBS for utility billing. Does anyone have a spreadsheet that calculates water and electric/gas usage that they could share? Id love to use SF and # occupants to determine the electricity/gas portion. Really appreciate the help!!!
I'm not sure if the OP is talking just about water, heat, electric etc. Just last year I had a company from Salt Lake City install a metering system for heat on my 12 plex. I thought about RUBS but decided on submetering for reasons stated above. It has been great. There was a small installation charge of $100/unit. They now monitor the heat usage each month and send a bill to the tenants calculated from their usage and corresponding share of the gas bill. They charge a $5/mo fee to each tenant included in the bill. The submetering company does not collect the payments though. They get sent in to my manager with the rent.
There is one central steam boiler for the whole building, and I was on the hook for the whole gas bill in the past. I started with the tenants paying half of their heat usage. Each apt has its own steam loop and thermostat, so they just installed run time meters on each apartment's steam valve and calculate the gas usage from that. I got the tenants on board by promising not to raise the rent that year. We had to include language in their contracts when they renewed last summer detailing the terms of the deal. They have been paying reliably. As with all things, they could bail if they had better options, but my rents are on the low side so overall they still have a good deal.
One of the side benefits is that the tenants now have skin in the game so to speak, and my gas bills have gone down a bit.
What kind of heating system do you have in your property?
Hello, do you have the name of the company that does the separate metering in Utah. thank you
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
3y
I am in the MHP space and have yet to do this but there are a lot of owners doing this. I am not totally sure it makes sense with a unit count under 10 but you can run the numbers and see what happens.