Using the RUBS Method

[Ryan Miller]

I have a 4 Unit in a suburb just outside of Albany, NY which has one gas/electric meter. We also pay for water/sewer so we hit the trifecta (maybe that's actually a pick 4)! I am now pricing out a utility split but the initial feedback had me thinking that it was cost prohibitive. In the meantime, the furnace (no AC) conked out on us so I financed a super high efficiency tankless wall unit that immediately dropped my bill by 30%. However, we are now looking at ways to increase cash flow. I am working w/ an electrician to see if splitting boxes is realistic but also exploring the RUBS method. From what I am reading, it sounds like using a combo of sq footage and # of occupants may be the "fairest" way to get a bill back number. Does anyone have info, documents, etc that they use w/ their tenants. My plan would be to keep rent the same during their next renewal but introduce the RUBS....assuming the electrician doesn't come back and say that we can do the entire house for $5k. Any help from the awesome BP community would be much appreciated!

[Steve Morris]

Ugh - Since I think the market is shifting towards faster increases in expenses than income (rent), it'd be worth investigating.

Don't know the cost, but water submeters are not that expensive to buy (<$200 each) IF you can install them cheaply.

Electrical sub-meters, don't know, but I'd do it unless I'm really tight on funds.

The idea is that you bill tenants back for their actual usage, which is why flat rate RUBS are kinda dumb.  With a flat number like $50/unit/month for all, that's $50 if you don't use a drop OR $50 if you leave all the faucets on day/night.  The idea is to use less water (very expensive in Portland).