If you’ve been including utilities in the rent or as a flat fee, you’re not fully recovering costs. Billing back either with submeters or a RUBS system can help you fully recover your utility costs.
Utility Billing Methods for Duplex & Triplex Properties
Submetering is when a landlord installs individual submeters that measure each resident’s individual consumption of a utility. Utility submetering allows property owners to allocate utility costs fairly by measuring each unit’s true consumption of water, gas and electricity.
With submetering, there are benefits for both the landlord and the tenant. Submetering is the most precise way to allocate gas, water and electric costs. This improves utility cost recovery (and NOI) by ensuring that residents are billed according to their actual usage, rather than a mathematical formula or guesswork. Residents are significantly more inclined to pay a utility bill that they perceive as accurate.
Ratio Utility Billing (RUBS)
Ratio utility billing, or RUBS, proportionally allocates costs for water, gas, electric, trash, cable and other services to residents based on an industry-accepted formula that takes into account unit size, layout, occupancy and more.
RUBS billing is typically utilized where space, system age, configuration or complexity makes it impossible or too expensive to install individual submeters. It is a fast and inexpensive solution that improves utility cost recovery, allocates costs more fairly among your tenants, decreases unnecessary consumption, and increases NOI in your duplex properties.