RUBS for Apartment Building

[Karim Shah]

I'm considering using RUBS on my 11 unit building for the gas (heat) and water.

Does anybody have experience with using RUBS, was it benefical?

[Jamal L.]

@Mario Brown

Here is the formula to calculate RUBS (Ratio Utility Billing System)

Each apartment is designated with an occupant factor. The allocation starts with a copy of the property’s utility bill using the dollar amount of the consumption period that is to be billed. A predetermined common area allowance percentage (determined by you, the owner) is deducted to give us the billable figure to allocate. This amount is divided by the grand total of each apartment’s designated occupant factor, multiplied by the apartment’s individual designated occupant factor. Below is an example of RUBS. This example may be used to allocate any utility such as water, sewer, gas or garbage.

Designated Occupant Factors:

1 person = 1.0 (1 person pays 100% of 1)
2 people = 1.6 (2 people pay 60% more than 1)
3 people = 1.9 (3 people pay 30% more than 2)
4 people = 2.2 (4 people pay 30% more than 3)
5 people = 2.5 (5 people pay 30% more than 4)
6 people = 2.8 (6 people pay 30% more than 5)

Your Property’s Utility Bill = $1,500.00
10% deduction for common area = $(150.00)
Total amount to allocate = $1,350.00

Property’s factored occupant total = 157.3

The allocation is figured: $1,350 / 157.3 = $8.58

1 person will pay $8.58 ($8.58 x 1)
2 people will pay $13.73 ($8.58 x 1.6)
3 people will pay $16.30 ($8.58 x 1.9)
4 people will pay $18.88 ($8.58 x 2.2)
5 people will pay $21.45 ($8.58 x 2.5)
6 people will pay $24.02 ($8.58 x 2.8)

A sample breakdown of a resident’s utility bill utilizing RUBS may be as follows:

Water:	$8.58
Sewer:	$18.52
Garbage:	$10.60
Bill Fee:	$3.95
TOTAL:	$41.65