RUBS for 5 unit property

[Kimberly Reed]

I have a 5-unit mixed use property that I'd like to use RUBS (ratio utility billing) for until I can physically separate the utilities. All of the places I've contacted have told me they won't work with smaller properties like mine. Can anyone give me a recommendation for a company that will?

Longer version: Water needs separated between all five units. Gas and electric is already separate for 3 units, so I just need to separate it for the 2 commercial units. It's on my to-do list to eventually physically separate all of the meters, but my first/current priority is on addressing a load of deferred maintenance left from the previous owner. If RUBS isn't an option due to the smaller property size, does anyone have suggestions on how to handle it in the meantime? (Bonus points for being cost effective.)

[Nam Trang]

If self-managed, and if less than 20 doors then consider auto-calculating this in Excel and mail-merging pdf bills to place on Tenants doors. It may take you a a couple hours up front to get everything setup but you will not need to pay anyone for the service going forward. I would charge everyone based on square footage and not separate out common area expenses except for the office (if you have one).

As for the collections aspect, I believe you would be able to report unpaid bills to the credit bureau (may want to call one of them to discuss). In the end, I'd rather have a few non-paying RUBS tenants than no RUBS at all.

I have RUBS on 1 property and flat rate billing on another, here are my formulas:

• RUBS (water/sewer) the tenant is responsible for 100% based on 75% number of occupants residing in the unit and 25% sq. ft. of unit.
• Flat rate billing (water/sewer + trash) the tenant is responsible for $60 monthly in water/sewer and $25 monthly for trash.

We are able to capture the majority of our expense on water, sewer and trash this way and pass it onto the tenants, while being in full accordance to our local and state laws. Please note, I still pay for all common water, electrical, and trash for the buildings, and am in no way advocating that the common areas should be paid by the tenants.