Guide Billing methods

RUBS vs submetering: which fits your building?

By MeterEase · Updated

When a building has one master meter, landlords have two common ways to bill tenants for utilities: RUBS (a ratio utility billing system) and submetering. Both recover the cost from tenants. They differ in hardware, cost and how closely a tenant’s bill tracks their own use.

RUBS in one paragraph

RUBS splits the master bill by a formula written in the lease, such as square footage, occupants, bedrooms, or a blend. Example with made-up numbers: a $400 water bill, two units of 600 and 1,000 sq ft. By square footage, the first pays 600 ÷ 1,600 × $400 = $150 and the second pays $250.

Submetering in one paragraph

Submetering puts a meter on each unit. Someone reads the meters each period and bills each tenant for measured use, often at the utility’s rate. It needs meters installed and maintained, and a reading process.

Side by side

  • Upfront cost: RUBS needs no hardware. Submetering needs meters and installation.
  • Monthly work: RUBS needs the bill and your unit data. Submetering adds meter reads and meter upkeep.
  • Fairness: Submetering bills actual use. RUBS is a formula, so use and share can differ.
  • Conservation: Submetering gives each tenant a direct reason to save. Under RUBS, savings are shared.
  • Best fit: RUBS suits older buildings and smaller properties where meters are costly to add. Submetering suits buildings where meters are practical, or new construction.

Whichever you choose, put the method in the lease and show tenants how their share was worked out. Try thefree RUBS calculator to see the split for your units.

Run this split every month without the spreadsheet

MeterEase reads the master bill PDF, applies your method and vacancy rule, and emails each tenant their share with the source bill attached, after you check the numbers. Plans start at $14/month.

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Questions

What is the difference between RUBS and submetering?

RUBS divides the master bill by a formula such as square footage or occupants. Submetering installs a meter on each unit and bills each tenant for measured use.

Which is cheaper to start?

RUBS, because it needs no hardware. Submetering needs meters bought, installed, read and maintained, which can cost a lot per unit depending on the building and plumbing or wiring.

Which is fairer to tenants?

Submetering bills actual use, so a tenant who conserves pays less. RUBS is an estimate; a single tenant in a large unit may pay more than they use. Many landlords pick RUBS because it is simpler and cheaper to run.

Is RUBS or submetering allowed where I own property?

It depends on the state, city and utility. Some places set rules for one or both. Check local rules and your lease. This is general information, not legal advice.

Can MeterEase bill submetered units?

MeterEase is built for RUBS: splitting a master bill by percent, square footage, bedrooms or occupants. It does not install or read submeters.

Related guides

Sources

Example numbers on this page are made up to show the math. This guide is general information, not legal advice; rules differ by state, city and utility.