RUBS and Oregon's Rental Regulations

[Susan Elliott]

Hello fellow Oregon investors,

Does anyone have experience using RUBS to charge tenants in multi-family properties their utilities that aren't sub-metered out? In this case, I'd like to have tenants pay for water/sewer in a 16-unit property we're looking into. Would this increase (say, $50/month on an $800/month rent) be included in Oregon's specified rental increase amount? In other words, if I did want to raise rents by the highest amount possible (9.9%) that would put me at $879 for that $800 rent example. Would I then be able to add on an additional $50 for water? Or would that $50 be included in the $79 increased I'd love to hear any other experience, insights, or tips with using the RUB system.

The property managers we are currently working with use Appfolio, which apparently has a built-in calculation for RUBS. They haven't used that feature before, however, so I'd like to be providing direct oversight for the first few billing cycles.

Cheers,

Susan

[Justin Russell]

@Susan Elliott

If you are considering implementing RUBS and charging a flat amount rather than using a defined formula, make sure that the amount you charge never exceeds the amount you pay for a given utility. For our clients who opt to charge a flat fee, we often take an average water bill, divide by the number of units, and take 5-10% off. This increases your operating expenses, but may help to mitigate risk from your tenants. You should never Collect more money for utilities than you are billed for.