Unable to Implement Standard RUBS Billing? Explore 3 Effective Alternatives

Unable to Implement Standard RUBS Billing? Explore 3 Effective Alternatives

Each property possesses distinct utility billing requirements. But what if the typical RUBS calculations fall short of delivering equitable and precise bills? Here are three strategies utility billing companies employ to enhance cost recovery when conventional RUBS calculation methods prove insufficient.

1. Allocation by Metered Consumption - Addressing Partial Submetering Scenarios

An advanced utility billing approach involves allocation by metered consumption. In this method, utility billing companies distribute one utility based on a submetered utility, typically seen in scenarios like 'hot water capture-cold water allocation.' When submetering both hot and cold water isn't feasible, but submetering hot water for each unit is possible, allocation by metered consumption offers a means to accurately assign water expenses by considering each unit's hot water usage.

How Allocation by Metered Consumption Operates:

Submeter the hot water for each unit Calculate total hot water consumption by summing up individual unit consumption Determine the billing factor by dividing hot water consumption by the total water consumption of the entire building Compute tenant water usage based on their hot water consumption and the billing factor

This method leverages partial submetering to establish billing factors for RUBS, ensuring a more precise allocation compared to standard RUBS.

1. Allocation by Metered Deduction - Managing Mixed Submetering Scenarios

In properties with a mix of submetered and non-submetered units, allocation by metered deduction offers a streamlined approach. Instead of employing separate billing methods for different units, this method integrates both RUBS and submetering efficiently.

How Metered Deduction Works:

Bill the submetered units conventionally Subtract the consumption for metered units from the master bill, yielding a preliminary bill representing total consumption by non-submetered properties Apply RUBS to this preliminary bill, distributing it across all non-submetered units

This approach optimizes submeter usage, minimizes allocated expenses, and simplifies billing processes, making it suitable for various scenarios like HOAs, mixed-use properties, and common areas.

1. Niche RUBS Factors - Tailoring Billing Solutions to Unique Property Characteristics

While conventional RUBS factors like square footage or occupancy serve many situations well, some properties benefit from specialized billing factors aligned with their unique attributes. Consider implementing these niche factors to refine your billing method:

Per unit allocation Ratio occupancy adjustment

Bedroom counts weighting

Fixed occupancy assumption

Common area deduction

Ratio occupancy with vacant unit allocation

These advanced factors can be customized to match specific property requirements, enabling landlords to bill tenants more accurately and fairly.

While traditional submetering and RUBS methods are effective for utility expense recovery, adopting advanced or customized allocation solutions tailored to your property's needs can significantly enhance performance and net operating income (NOI).