Collecting RUBS Delinquencies in California

[Jason Mak]

Question for California multifamily landlords who have implemented RUBS to recoup utility costs. I have implemented a RUBs systems using Realpage to begin billing my tenants RUBs however several tenants refuse to pay the RUBS reimbursement despite the fact that we served them the 60 day notice updating the terms of their lease.

I do not believe that I can apply rent payments to their RUBS balances legally in California.  Nor can a RUBS delinquency justify an eviction.  Therefore, I can only deduct any uncollected RUBS balance from their security deposit if/when they move out or try to file a judgment in small claims court, something I'd like to avoid doing with a current tenant.

Anyone have any experience with this?