Can Tenants Audit RUBS calculations/charges?

Question

Greg Scott · Answer

Quinn:

A true RUBS (variable cost monthly depending on usage) must comply with local ordinances and typically can recover only a portion (e.g. 80%) of the utilities. Some landlords will push that and your local government should provide methods for auditing.

A flat fee system is perfectly legal if written as such in your lease and it doesn't matter if the collections exceed the costs.  If the costs were not documented in your lease, you may have a justified gripe.  If it was in the details and you simply did not read your lease before signing, call it a lesson learned.

Tim Patrick · Answer

Quinn - did you ever resolve this? I’m having the same issue with my landlord and they refuse to provide the full bills/calculations and “promise” that the system is “fair”. Like you said, there is no information available online for tenants, only how landlords can nickel and dime their tenants without spending the bare minimum they should have to in order to individually meter units.

Our water and sewer bill has doubled over the course of our tenancy with no documentation. Additionally, I suspect that our charges go up when there are vacant units in the building.

My water/sewer charge in a two bedroom apartment is more than any house I’ve owned.

Brandon Wells · Answer

@Quinn Zerfas If you think you are being taken advantage of then you would simply contact the utility commission.  From my limited understanding of utility laws, if they have a billback policy, which sounds like they do, and aren't making a profit on the utility billback then they are probably ok.

Again, I am not an expert on the laws so would recommend calling the utility commission if you are concerned.

Quinn Zerfas · Answer

There is no clarity online as to what to do as a tenant if you think you are being taken advantage of in terms of RUBS. Every result is about how a landlord can sign up for RUBS and cut their net costs. Where do you go in Los Angeles to report a suspicion of this nature? It is fraud if the building charges back more the cost of a public utility than they pay, is it not? Or is the system so obtuse that a landlord can pull in $7k in RUBS each month and only be paying $5k out to DWP? (My numbers here are for examples sake)

Quinn Zerfas · Answer

@Brandon Wells They don't utilize any third party like Realpage. The building has Appfolio for rent payment, but they don't even use that fully. Maintenance requests are never closed. Fully executed leases are not provided unless asked for. This building doesn't care at all. The lease specifically says there is no smoking anywhere in the building for example, not even on individual balconies. Everyone still smokes, including the onsite manager. Think Glendale, CA.

Quinn Zerfas · Answer

@Greg Scott I read all my leases. There is no language in the master lease and no addendum was provided. In fact, I was told verbally about the RUBS and fee after my lease was signed.

The bottom line is, how do I make sure I/the building in general, are not being screwed over? The building owner's daughter is the onsite property manger and there are at least 5 units being occupied by family members. If I wasn't sure of this, I would do a census door to door.

Brandon Wells · Answer

@Quinn Zerfas Utility bill backs are touch because there are federal laws but also state specific laws. However aslong as bill back fits within those laws it can be done a specific way.

Two ways I have billed back via rubs are as follows:

1) 50% square feet / 50% Total Occupants

2) 100% square feet

I prefer option 1.

Also depending on where you are you can push the bill back.  My goal is 90% collection, but I also use realpage utility Management so they handle this whole process for me and my clients.

Can Tenants Audit RUBS calculations/charges?

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