RUBS Explained: Unveil Utility Billing Secrets
Anthony A. Luna • May 16, 2024
How RUBS Utility Billing Works in Your Apartment Building
At Coastline Equity, we believe that fair and transparent utility billing is essential. That is why many of our multi-tenant properties use RUBS, or the Ratio Utility Billing System, to allocate shared utility costs in a way that reflects real usage and household size.
Whether you are new to RUBS or just want to better understand your bill, here is everything you need to know.
What Is RUBS?
RUBS is a utility billing method that divides the cost of shared services among residents based on measurable factors. Instead of relying on individual meters, which can be costly to install and maintain, RUBS uses a standardized formula that considers:
- Unit size
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Number of occupants
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Overall building characteristics
Utilities Typically Billed Through RUBS:
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Water and sewer
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Trash and recycling
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Gas and electricity (if shared)
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Common area utility usage
This approach is especially effective in properties that were not originally built with individual metering infrastructure.
Our Recommended RUBS Formula: 50% Occupancy, 50% Square Footage
At Coastline Equity, we use a straightforward and fair approach to RUBS billing. Our standard formula divides utility costs using:
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50% based on the number of occupants in each unit
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50% based on the square footage of each unit
This hybrid model balances two key factors that influence utility usage:
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Occupancy reflects actual human activity, such as how often water is used, how many showers are taken, and how much electricity is consumed.
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Square footage accounts for heating, cooling, and lighting needs, which scale with the size of the space.
By combining both elements equally, we ensure that utility charges are more accurately and fairly distributed across all residents.
If your building has unique characteristics, we may adjust this formula slightly, but our goal is always to use the fairest and most consistent method available.
Why Property Owners Use RUBS
Fair Cost Allocation
RUBS ensures each household pays a fair share based on expected consumption. Residents who use more utilities contribute more, while those who use less avoid subsidizing others.
Cost Efficiency
Installing individual utility meters can be expensive and time-consuming. RUBS reduces those upfront and ongoing costs, allowing property managers to maintain more affordable housing.
Encourages Conservation
When residents see direct utility charges, they are more likely to monitor usage. Over time, this leads to lower consumption and benefits both the environment and residents' budgets.
How RUBS Is Calculated
Each Coastline Equity property uses a custom RUBS formula tailored to the specifics of that building. These formulas typically account for:
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Unit Square Footage: Larger units are assumed to use more utilities.
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Number of Occupants: More people generally means higher usage.
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Seasonal and Operational Variables: Building age, efficiency, climate, and shared facilities are all factored into the allocation model.
The goal is to distribute costs fairly while remaining compliant with local utility billing regulations.
Calculate the impact of RUBS on your property
Frequently Asked Questions
Is RUBS fair if I use fewer utilities than other tenants?
While RUBS does not track individual usage directly, it relies on logical indicators like unit size and occupancy. This ensures that billing is balanced across the building, without requiring expensive metering systems.
Can I dispute a RUBS charge?
Yes. If you believe your RUBS bill is incorrect, please contact your property manager. We will review the charges with you and make any necessary corrections.
Is RUBS included in my rent?
No. RUBS charges are billed separately and appear as a distinct line item on your monthly statement. They are not part of your base rent.
Does my lease mention RUBS?
Yes. Lease agreements at RUBS-enabled properties include clear language explaining the billing process and how your utility share is calculated.
How is the RUBS formula created?
Our billing formulas are designed using property data, industry best practices, and local compliance requirements. We routinely review them for accuracy and fairness.
What if I live with roommates?
RUBS applies to the household unit, not individual tenants. You and your roommates should determine how to divide utility costs among yourselves.
Tips for Reducing Your RUBS Bill
Even in a shared billing system, your usage habits matter. Consider these steps to help manage your utility costs:
Water Conservation
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Fix leaky faucets quickly
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Take shorter showers
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Run dishwashers and washing machines only when full
Energy Efficiency
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Turn off lights and electronics when not in use
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Use energy-efficient appliances and bulbs
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Keep blinds closed during hot weather to reduce cooling needs
Waste Reduction
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Recycle and compost when possible
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Avoid unnecessary packaging
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Dispose of trash properly to help manage common area waste costs
Questions? We Are Here to Help
At Coastline Equity, we are committed to fair billing practices and clear communication.
If you have questions about how RUBS works in your building or need assistance understanding your charges, reach out to your property manager. Our team is here to support you.
More about Coastline Equity
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Property Management Services
Our team will handle all your property needs, offering specialized services such as in-depth inspections, liability management, staff recruitment and training, and round-the-clock maintenance—expert support tailored to the unique requirements of your real estate assets.
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About Us
Our dedicated team transforms property management challenges into opportunities. From tenant management to streamlined rent collection and proactive maintenance.
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Property Management Excellence
As a contributing author for Forbes, Anthony A. Luna brings a wealth of expertise and knowledge in the property management industry, real estate sector, and entrepreneurship, providing insights and thought-provoking analysis on a range of topics including property management, industry innovation, and leadership. Anthony has established himself as a leading voice in the business community. Through his contributions to Forbes, Anthony is set to publish his first book, 'Property Management Excellence' in April 2025 with Forbes Books.
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Insights
Learn more about Coastline Equity's property management practices & processes and how we support our clients with education and a growth mindset.Coastline Equity Property Management is your partner as you continue to learn and grow.