implementing RUBS ???

[Kenneth Williams]

Good Afternoon BP! So I just got my first multifamily property under contract. Its currently a triplex (3/2, 2/1, 1/1). The 2/1 and 1/1 are both rented out with longterm tenants on a month to month basis and below market rents:) I have enough space in the 3/2 to convert to fourplex if I so choose but I haven't made that decision just yet. The previous owner was actually living in the 3/2 but has since moved out. She stated that since the structure was built right on the property line the utility companies stated they would not be able to separate the meters.

Utilities are broken down as such: Owner pays water apprx $120 monthly : Tenants split electric/gas $300 monthly

I say all of that to ask, Are there any companies that install the RUBS system here in San Antonio on such a small scale (2-4 units) ? Any local property management companies with expierence working with these companies or their software?

[Ryan D.]

I advise you do not roll utilities into the rents - have rents & utilities be separate charges. There are several advantages here: you can advertise the actual rent, rather than the higher rent+util number when marketing your property, which makes it more attractive.
Put it in the lease that the utilities are a separate charge, & that all monies collected will first go to paying utilities charges, and then to rents - in many areas you can not evict a tenant for not paying utilities. This way, if a tenant decides to stiff you on the utilities bill, the way you apply their check will have them underpaying rent, for which you can evict.

You can also put it in your lease that the utilities charge will adjust on an XX month basis. This allows you adjust the utilities charge every so often based on your actual bills, where as if you rolled them into the rents, you could only charge this at the end/beginning of leases. In some areas, you can not charge tenants more for utilities than you are actually paying the utilities company, so we aware of relevant local laws.
In practice, with such a small building it is practical to just take your average utilities bill over the trailing 12 months, divide by the number of people living there, & bill accordingly each month.