RUBS: (Ratio Utility Billing System)
A Ratio Utility Billing System allocates the property’s actual utility bill to the residents based on an occupant factor, square footage factor, or a combination of both.
RUBS – How It Works
It is not always possible to install a submetering system at a property due to plumbing and electrical configurations as well as the initial cost of the capital investment. Faced with these restraints, apartment owners may use the RUBS utility billing method to recover utility costs from their residents. This is a fair and legal (in most states) system when submetering is not feasible. The advantage of implementing a RUBS program is that it requires no initial capital investment and it will avoid intrusion upon entering each resident’s apartment to install a meter.
Accurate Utility Management is able to utilize the RUBS utility billing method when submeters are not present. RUBS is a utility billing method that allocates 100% of your property’s utility bill to the residents based on an occupant factor, square footage or a combination of both, less a predetermined percentage (determined by you, the owner) of a common area allowance. We typically use the occupant factor allocation method exclusively for water and sewer, and the square footage occupant factor combination for gas and electricity.
How Accurate Utility Management will process a resident bill utilizing RUBS...
Each apartment is designated with an occupant factor. The allocation starts with a copy of the property’s utility bill using the dollar amount of the consumption period that is to be billed. A predetermined common area allowance percentage (determined by you, the owner) is deducted to give us the billable figure to allocate. This amount is divided by the grand total of each apartment’s designated occupant factor, multiplied by the apartment’s individual designated occupant factor. Below is an example of RUBS. This example may be used to allocate any utility such as water, sewer, gas or garbage.
Designated Occupant Factors:
1 person = 1.0 (1 person pays 100% of 1)
2 people = 1.6 (2 people pay 60% more than 1)
3 people = 1.9 (3 people pay 30% more than 2)
4 people = 2.2 (4 people pay 30% more than 3)
5 people = 2.5 (5 people pay 30% more than 4)
6 people = 2.8 (6 people pay 30% more than 5)
Your Property’s Utility Bill = $1,500.00
10% deduction for common area = $(150.00)
Total amount to allocate = $1,350.00
Property’s factored occupant total = 157.3
The allocation is figured: $1,350 / 157.3 = $8.58
1 person will pay $8.58 ($8.58 x 1)
2 people will pay $13.73 ($8.58 x 1.6)
3 people will pay $16.30 ($8.58 x 1.9)
4 people will pay $18.88 ($8.58 x 2.2)
5 people will pay $21.45 ($8.58 x 2.5)
6 people will pay $24.02 ($8.58 x 2.8)
A sample breakdown of a resident’s utility bill utilizing RUBS may be as follows: