RUBS vs. Submetering: Which Utility Billing Method Is Best for Your Rental Property?

If you own a multifamily property, figuring out how to fairly bill tenants for utilities can be a real challenge. Should you install individual meters for each unit? Or is there a more flexible, cost-effective option? 

Many property owners and real estate investors are turning to utility billing systems like the Ratio Utility Billing System (RUBS) as an alternative to submetering. But which method is best for your rental property? 

Let’s break it down so you can decide with confidence. 

When choosing between RUBS and submetering, consider the following: 

• Property age and layout: If you own a vintage or mixed-use building, implementing a Ratio Utility Billing System (RUBS) may be much easier than adding submeters. 
• Number of units and size: For properties with larger units or a wide range of unit types, RUBS allows billing based on factors like occupancy or size. 
• Tenant turnover: Frequent move-ins and move-outs? RUBS simplifies the billing process and makes utility recovery more consistent. 
• Compliance and legal considerations: Check state and local laws to confirm whether RUBS programs are permitted in your area. 

Benefits of RUBS 

RUBS programs offer several advantages for property owners: 

• Helps recover utility costs without the high expense of meters 
• Allows you to manage utilities more efficiently 
• Encourages tenants to reduce utility consumption, even without individual meters 
• Simplifying billing makes it easier to manage cash flow and reduce utility-related losses 

It’s especially useful for owners of multifamily properties who want more control over cost recovery without investing in infrastructure upgrades. 

When Submetering Might Make More Sense 

If your property is newer, already has individual meters, or your tenants demand precision and transparency, submetering may be the better fit. Some tenants prefer paying for their exact utility usage, especially in competitive rental markets. 

Also, submetering may yield stronger long-term tenant satisfaction in certain communities. 



Final Thoughts 

Both RUBS and submetering are valid utility billing systems — the right one for your property depends on your goals, building type, and budget. 

If you’re looking for a scalable solution that simplifies the billing process, improves cost recovery, and doesn’t require invasive installations, RUBS may be the ideal fit. On the other hand, if your focus is precise billing tied to individual consumption, submetering offers a direct path. 

Not sure which is best for your property? Start with a utility audit and evaluate the pros and cons based on your building’s layout, resident demographics, and local regulations.