Shared utilities can be a major challenge in multifamily—especially in older buildings without individual submeters. When water, sewer, and trash costs rise, owners are stuck choosing between absorbing the cost or raising rents.
RUBS (Ratio Utility Billing System) is a practical middle path: allocate shared utility costs across residents using a documented formula—without expensive retrofits.
What Is RUBS?
RUBS divides utility expenses—commonly water, sewer, trash, and sometimes gas/electric—among residents using usage proxies such as number of occupants, bedroom count, square footage, or a blended ratio.
When RUBS Makes Sense in LA County
- Older multifamily properties without submeters
- Owner-paid utilities that materially impact NOI
- Buildings with significant common-area water usage
- Owners who want transparent, consistent cost allocation
Benefits
- Improved cost recovery and more predictable operating expenses
- Encourages conservation
- Avoids expensive meter retrofits
- Clearer documentation vs “utilities included” pricing drift
Implementation Checklist
- Review utility bills and choose which costs to allocate
- Select a simple formula residents can understand
- Update lease language and communicate early with examples
- Keep billing records and calculations organized
Common Mistakes
- Launching without clear communication
- Overly complex formulas
- Inconsistent application across units
- Missing documentation of bills and calculations
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