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What is RUBS, and how you can implement it
At the time i am writing this article, i am in the process of acquiring my first property in the US. I am looking for a 160 unit multi family in Kansas as a value add. C to B Type. Mismanaged properties. Long term value add, as a cash flow play.
RUBS(Ratio Utility Billing System) is a way of charging utilities to the tenants based on occupancy, apartment square footage, number of beds.
The general idea is: since several buildings have prohibitive costs to install individual metering systems per unit, you would have a general easy to implement one that is calculated like the above. This will help you collect more from each tenant and have them lower their utility expenses because they are the ones holding the bag, so when they start seeing the monthly bills, they will start behaving more responsible and lowering their utility expense.
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