All Forum Posts by: Chris Roberts

I do utility management as a profession and here are a few suggestions/things to think about. 

1. Flat rate billing for water is not advised in all 50 states. If an owner is found to be over-recovering on water, a necessary commodity, it open up grounds for a potential lawsuit. It sums down to “my landlord was profiting on providing us water a necessary condition to make my apartment liveable”. IF you bill a flat rate it needs to be under recovering on the actual monthly expense.

2. RUBs per SqFt is a good practice. More commonly the popular method for water is Rubs per occupant since people use water and not sqft. It will take more work on the property team but will reduce future questions/complains.

3. Most importantly, each state, county, and municipality has its own regulations on utility bill back. Be sure to check yours. 

Just my 2 cents. I have known people on both sides of this contract in the last 18 months (builder & buyer) in the 5 times I’ve heard of a price increase during the build process and not once has the Buyer won by keeping the property at the original agreed upon price. All due to contract clauses. 

I would have a lawyer review and see their material/labor increases to ensure that is all your absorbing. They might be flexible on their profit margin. 

I would highly recommend reading California Public Utilities Code 739.5 before pursuing any electric or gas bill back. 

If you want to move West and near the outdoors but still want somewhere good priced, I think New Mexico is an underrated state. Taos and Angel Fire I hear are great ski resorts. 

Personally I’ve never been, but my friends that live there rant and rave about it. 

What year was the property built? 

In CA, properties built after 1/1/18 require sub meters to bill back water and sewer to tenants. 

Electricity can not be billed back via RUBs in CA, but you “could/should” be able to go after tenant reimbursement for water, sewer, and trash. As someone stated, my personal recommendation would be to include a common area reduction so residents aren’t hit with the full irrigation expenses in such a dry climate. 

Congratulations @Kalon Baker. How far north did you go? Near Beck St? 

Section 739.5 of the California Public Utilities Code will be where you want to look. 

@Bret Winegar This is awesome to hear! Congratulations on your successes! I always enjoy seeing that people are crushing it out of state. 

 @Irving Franco let me preface by saying I don't work with SFRs, but I do oversee the utility billing for 88 multi-family props in CA including LA County. 

The mulit-family regs for RUBs are:

Water & Sewer are fine. 

Gas is a no (unless it is solely used for a water heater or boiler system). 

Electricity is a no (unless LADWP is the electric provider)

Flat fees to cover water & sewer are a hard no. 

Feel free to PM me if you have any questions I can help with. 

@Bret Winegar

Hey Bret, I saw this post and wanted to follow up to see if you can provide an update. I hope it is going well!