The use of RUBS or ratio utility billing system models can be effective in a wide range of different applications. This is a system where billing for a utility, typically water, is based on the square footage, occupancy, number of rooms or some other type of standard measurement throughout the building.
These systems work on the premise that as occupancy or square footage increases, the amount of a given utility will also increase. Of course, it is possible to have a very large apartment with only one-person occupancy, which is why these systems tend to use a combination of factors to develop the billing increments.
Why Not Submeter?
While it is highly desirable to solve the utility billing issue by installing submeters for each unit, this is not always practical. For example, in older apartments, condos or other types of multi-family dwellings or even in old commercial buildings, renovations may have occurred throughout years or decades.
Over time, pipes have been added; pipes have been run off of different lines and all feed into the same unit, or perhaps multiple mains are feeding different areas of large space such as a commercial business.
This creates a real problem for using submeters. There would need to a meter on each line coming into the unit, perhaps resulting in three or more meters for one apartment or office space. Not only is this cost prohibitive, but it would be difficult for the customer to manage, not to mention the property owner.
The answer to this is to use a ratio utility billing system. It will be critical to implementing the ratio utility billing system correctly, avoiding any errors in billing for tenants that can create conflict between landlords and their previously happy occupants. It is also important to consider any state limitations as to how tenants can be billed using a model.