The Benefits of Ratio Utility Billing Systems (RUBS)

Lately, we’ve been discussing property value and how it’s directly affected by increased revenue and/or lowering operation expenses. So today we’ll explain how implementing ratio utility billing systems (RUBS) can be beneficial for property owners in regards to higher revenue and property value. 

A ratio utility billing system  is a method of calculating the utility consumption of a tenant based on factors such as unit square footage, occupancy, or number of bedrooms. Residents are then billed on a monthly basis based on their calculated utility consumption. Using RUBS throughout a property has a multiple advantages such as fast implementation, returns on utility expenses, and an immediate increase of cash-flow. Additionally, tenants can be resistant to raised rent rates, so implementing RUBS is a good alternative to achieve a similar increase in revenue.

Perhaps the biggest advantage of RUBS is the encouragement a property’s community feels to conserve utilities as a whole. Conserving utilities benefits tenants as it lowers their monthly bill while owners see a decrease is overall operation expenses. Furthermore, implementing RUBS give tenants more incentive to report maintenance problems like leaking faucets or toilets. According to Multifamily Utility Company Inc., on average, tenants use anywhere between 5% to 40% less utilities when RUBS are announced and implemented. Also, The Environmental Protection Agency (EPA) and National Apartment Association (NAA) have both concluded RUBS encourage utility conservation.

By pushing utility costs to tenants, owners can decrease utility expenses, benefit tenants by making them aware of wasteful utility usage, and protect themselves from fluctuating utility priceswhile creating a consistent stream of revenue. Ultimately, implementing RUBS can be beneficial for a property owner in almost every situation.

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