Guide Utility billing basics
What is RUBS? Ratio utility billing explained
RUBS (ratio utility billing system) is a way to divide one master utility bill among the units in a building using a formula, such as square footage, number of occupants or bedrooms, instead of a separate meter in each unit. Landlords use it to recover shared water, sewer, trash, gas or electric costs from tenants.
How RUBS utilities billing works
- The building receives one master bill from the utility.
- The landlord picks an allocation factor that the lease states, such as square footage or occupants.
- Each unit’s share is its factor divided by the building total, multiplied by the bill.
- Vacant units are either absorbed by the owner or left out, depending on the landlord’s rule.
- Each tenant is billed their share, ideally with the master bill attached so they can check it.
Example: a 720 sq ft unit in a 2,400 sq ft building pays 720 ÷ 2,400 = 30% of the bill. On a $180.40 water bill, that is $54.12. Try your own numbers in the free RUBS calculator.
Common RUBS allocation methods
| Method | How the share is set | Often used for |
|---|---|---|
| Square footage | Unit sq ft ÷ total sq ft | Heating, cooling, gas |
| Occupants | Unit occupants ÷ total occupants | Water and sewer |
| Bedrooms | Unit bedrooms ÷ total bedrooms | Water, when headcount is not tracked |
| Hybrid | Blend of two factors, such as 50% sq ft and 50% occupants | Water in buildings with mixed unit sizes |
| Equal per unit | Bill ÷ number of units | Trash |
RUBS vs submetering
| RUBS | Submetering | |
|---|---|---|
| How use is measured | Estimated by formula | Measured by a meter in each unit |
| Hardware | None | A meter per unit, installed and read |
| Upfront cost | Low | Higher, because of meters and installation |
| Accuracy for each tenant | An approximation | Reflects actual use |
| Encourages conservation | Weakly, since the building shares the bill | Directly, since each tenant pays for their own use |
Buildings without unit meters usually start with RUBS because it needs no hardware.
Is RUBS legal?
It depends on the property’s location. States and cities differ on whether landlords can allocate utility costs, which utilities they can allocate, and what the lease and bill must disclose. Tenant advocates have raised concerns about added fees and unclear formulas, so transparency matters. Before billing, confirm your local rules, state the method in the lease, and show tenants the math and the master bill.
This guide is general information, not legal advice.
How to start billing utilities with RUBS
- Confirm the rules for your state, city and utility.
- Write the allocation method and any vacancy rule into the lease.
- Record each unit’s square footage, occupants or bedrooms.
- When the master bill arrives, calculate each unit’s share.
- Send each tenant their share with the source bill attached.
- Keep the bills and calculations for your records.
Do steps 4 to 6 in minutes each month
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.
Questions
What does RUBS stand for?
RUBS stands for ratio utility billing system. It divides a building’s master utility bill among units using a formula instead of a meter in each unit.
What is a RUBS charge on my rent statement?
It is your share of a building-wide utility bill, such as water, sewer or trash, calculated by a formula. You can ask your landlord which method they use and for a copy of the master bill.
Is RUBS the same as submetering?
No. Submetering measures each unit’s actual use with its own meter. RUBS estimates each unit’s share from factors like square footage or occupants, so no meters are installed.
Is RUBS legal?
It depends on where the property is. Rules differ by state, city and utility type, and some places limit or regulate how landlords allocate utility costs or require specific lease disclosures. Check local law and state the method in the lease before billing.
How often do landlords bill RUBS?
Usually monthly, each time the master bill arrives. Each tenant receives their share for that billing period.