Utilities in landlord's name and billed to tenant in Texas

Utilities in landlord's name and billed to tenant in Texas

Banker · Dallas, TX · Member since 2013 · 158 posts · 129 votes

I am a single family landlord in Texas and am wondering if it is legal for me to keep utilities in my name and bill them to the tenant at a 10% premium. If it is legal would I need a separate agreement signed? I know this is done to a certain degree on some multifamily properties and is known as RUBS income i believe. One of my houses is an area that would benefit from this arrangement. The tenants in that area would like not having to pay extra deposits and I would like the extra income and the ease of keeping utilities on when they vacate.

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  • REALTOR® · Bastrop, TX · Member since 2013 · 324 posts · 191 votes
    12y

    @Waylon Themer Are you talking about offering it as an option or requiring it?

  • Commercial Real Estate Broker · Scottsdale, AZ · Member since 2013 · 36 posts · 11 votes
    12y

    You definitely can't make a profit off a utility from what I understand. Even in Texas a landlord can't even pass through service fees to a tenant.

  • Banker · Dallas, TX · Member since 2013 · 158 posts · 129 votes
    12y

    I was talking about making it an option and using a written agreement to document it. I suppose my question is answered by John. Thanks!

  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    12y

    Most MF properties doing a RUBBS program will make sure that they stay under 75% return to make sure that they don't over charge on the billback.

  • Banker · Dallas, TX · Member since 2013 · 158 posts · 129 votes
    12y

    Thanks for the replies, I previously misunderstood RUBS; I understand it now. I will continue with my current program. Thanks again!

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