Ratio Utility Billing System (RUBS)

[Mark M.]

Has anyone use RUBS (ratio utility billing system) on a small multifamily property (say 10 units or less)?  Is it cost effective for smaller units?  What are your thoughts/experiences?  Thanks!

[David Thompson]

Ryan,

RUBS is used in about every 100+ unit apartment building I look at in Texas and if its not used, its one of the first value add things we look at.  It's not illegal.  It's not unprofessional.  You have to work w/the utility companies so why would that be illegal ?  What it does do is put the burden on the user to be more energy efficient.  My mentor once told me that when he really got sold on the RUBS system is when he went into one of his units in the heat of the summer in Texas and the guy had the AC on 60d sitting on the couch w/a blanket.  Right then and there he realized all bills paid was not only an economic burden but it did not put the incentive in the right place, w/the user and was not good for the environment.  After he implemented the RUBS, he actually reduced the rent a bit to enable the user to adjust to the new extra billing.  It has nothing to do w/being a slumlord or a bad landlord.  It's all about empowering the user and if one of the residents is not energy efficient, why should everybody pay for it in higher rents for all.