As a multifamily property owner or manager, recovering utility costs is essential for maintaining profitability. Many property owners use the Ratio Utility Billing System (RUBS) as a way to allocate water expenses among tenants. However, while RUBS may seem convenient, it has significant drawbacks that could be impacting your Net Operating Income (NOI), tenant satisfaction, and long-term property value.

What is RUBS Billing?

RUBS is a cost allocation method that divides a property’s total water bill among tenants based on factors like unit size, occupancy, or a fixed percentage—instead of actual usage. It’s commonly used in older properties where installing traditional submeters is challenging or expensive.

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Why Some Property Owners Choose RUBS:

✅ Lower upfront costs – No need for meter installations
✅ Quick setup – Easier implementation compared to submeters
✅ Utility cost recovery – Shifts water expenses to tenants

However, while RUBS may seem like a simple solution, it comes with serious limitations.

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The Hidden Costs of RUBS Billing

While RUBS helps recover water costs, it lacks transparency and fairness, which can lead to:

🚨 Inaccurate Billing & Tenant Disputes

• Tenants are billed for water they may not have used, leading to frustration and complaints.
• High-usage tenants pay the same as low-usage ones, creating resentment.

💰 Lost NOI & Increased Vacancies

• Unfair billing structures can drive tenants away, increasing turnover and vacancy rates.
• Property owners may face legal challenges or regulatory restrictions on RUBS billing.

🌍 No Water Conservation Incentives

• Since tenants aren’t billed based on actual usage, there’s no motivation to reduce water waste.
• Properties using RUBS may consume more water than those with submeters, leading to higher overall costs.

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The Smarter Alternative: Submetering with SimpleSUB Water

If you’re looking for a more profitable and tenant-friendly approach, submetering is the way to go. SimpleSUB Water’s over-the-pipe submetering technology offers fair, accurate, and automated billing—SimpleSUB Billing!

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Why Property Owners Choose SimpleSUB Water:

✅ Guaranteed NOI Increase – Recover 100% of water costs without tenant disputes.
✅ Accurate & Transparent Billing – Tenants pay only for what they use, reducing complaints.
✅ Easy Installation – Simple over-the-pipe design means no plumbing modifications required.
✅ Automated Leak Detection – Prevent costly water damage with 24/7 monitoring.
✅ Scalability – Manage billing and cost recovery across your entire portfolio.

Unlike RUBS, submetering rewards water conservation and ensures every tenant is billed fairly, leading to higher tenant satisfaction and lower turnover.

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Is It Time to Upgrade?

If you’re still relying on RUBS, it may be time to rethink your strategy. With water rates increasing and tenants demanding fair billing, submetering is the future of utility cost recovery. Inquire about SimpleSUB Billing today.

💡 Ready to switch to a smarter water billing solution? Contact SimpleSUB Water today and take control of your water costs with SimpleSUB Water Meters and Billing.