Sometimes some properties are huge to be rented out to a single-family. These properties are also known as multifamily properties because, with a partition, the property is rented out to different renters. However, billing is a major issue here because of only one meter for each utility.
RUBS Overview.
Well, RUBS or Ratio Utility Billing Scheme is the method that is used in such places where the bill needs to be divided because of a single meter. Here different things are used to calculate the bill, some of which are:
- Square foot area
- A number of people living.
- Combination of different amenities.
How does RUBS Work?
When RUBS is needed to be implemented, there are a few steps that need to be followed. Those steps are elaborated below:
- Doing the property analysis.
- Lease addendums are issued to the current residents.
- Recent bills and the unit information are uploaded to an integrated system along with the master bills.
- When the renters agree, the bills will be issued to them.
The bill will be paid to the service provider, which will send the reimbursement check to the owner or the management company.
These are the basic steps of RUBS working.
Although RUBS is a great way of dividing bills into different renters, it comes with its benefits and demerits. Here we will elaborate on both of them.
The Benefits of RUBS:
The following are the benefits of implementing RUBS.
· Less cost.
When a property is large enough to be a multifamily property, the number of supplies coming to that place. In this case, installing different meters for all different supplies of the utilities will cost a lot for the owner. So, by using the RUBS method, the costs can be significantly reduced.
· Less wastage of utilities.
It is a major psychological factor that people waste things when they know that they have full control over them. RUBS makes it difficult for people to waste the resources as they know that they would have to pay a hefty amount in terms of bills if they do so.
The Demerits of RUBS.
The following are some of the demerits of RUBS.
· An agreement is required.
When the owner wants to implement RUBS for the bills of the rented property, the agreement between the renters and owners needs to be signed. The renters have the authority to reject the option and do not follow RUBS. So, this makes it somewhat difficult for the owner to find willing renters.
· Not legal everywhere.
Some cities do not have RUBS as a legalized bilking system. It is because it is thought to be unfair. After all, there could be a case where the person with more land is using fewer utilities, but he has to pay more. So, if RUBS is not legal, you cannot use it.
Conclusion
A great solution instead of installing multiple meters for the multiple family property is RUBS. Here we discussed all its working and significance.