Frequently Asked Questions

What is the purpose of third-party utility billing?

The purpose of third-party utility billing is to accurately allocate utility costs to residents based on their actual usage, rather than having those costs absorbed into rent. This approach ensures property owners recover expenses that would otherwise reduce net operating income, stabilizes cash flow, and protects profitability from rising utility rates. It also promotes fairness and accountability, providing property managers with the tools, compliance expertise, and reporting needed to operate more efficiently.

Why do I need a third-party billing company?

A third-party billing partner takes the complexity and risk out of utility cost recovery. Instead of absorbing unpredictable utility expenses, property managers can ensure accurate allocation of costs to residents, improve net operating income (NOI), and gain valuable visibility into consumption trends. Third-party billing also enhances compliance, reduces administrative workload for your onsite team, and creates accountability for residents — leading to lower waste and more consistent recovery of utility expenses.

What will it cost me?

Our billing services are designed to pay for themselves. In most cases, there is little to no direct cost to the property owner or management company. Instead, fees are typically covered through resident billing or built into the utility recovery process. The result is improved NOI, reduced operating risk, and a more predictable expense structure; all without adding overhead to your team.

What can I bill my tenants?

You can bill residents for nearly all utilities that are measured or allocated, including water, sewer, trash, gas, and electricity. In some markets, stormwater, cable, and other ancillary charges may also be recoverable. What you bill depends on local regulations and your lease structure, but our team ensures your program is fully compliant while maximizing recovery. We’ll design a billing model that fairly passes utility costs to residents, improves accountability, and protects your NOI.

What are the types of measured collections for utilities?

There are three primary ways utilities can be measured and allocated to residents:

Submetering – Individual meters are installed for each unit, tracking actual consumption of water, gas, or electricity. Residents pay for what they personally use.
Ratio Utility Billing System (RUBS) – Costs are allocated based on factors such as unit size, occupancy, or other fair ratios when submeters are not in place.
Flat or Fixed Fee Billing – A set charge is billed each month to help recover utility costs, often used for services like trash or pest control.

Each method has advantages depending on your property’s setup, local regulations, and your financial goals. Our team helps determine the best approach to maximize recovery and ensure compliance.

What is RUBS billing?

RUBS, or Ratio Utility Billing System, is a method of allocating utility costs among residents when individual submeters are not installed. Instead of billing based on exact usage, costs are distributed using fair ratios such as unit square footage, number of occupants, or bedroom count. This approach allows property owners to recover utility expenses without the expense of installing meters, while encouraging residents to be mindful of their consumption.

What types of rubs billing are there?

RUBS (Ratio Utility Billing System) can be structured in several ways, depending on your property and local regulations. Common methods include:

Occupancy-Based – Costs are divided according to the number of residents in each unit.
Square Footage-Based – Allocation is based on the size of each unit relative to the property’s total rentable space.
Bedroom Count – Utility costs are distributed based on the number of bedrooms in a unit, reflecting typical usage patterns.
Hybrid Models – A combination of factors (e.g., occupancy + square footage) to create the most equitable allocation.

Each method has pros and cons, and the best choice depends on your property layout, resident mix, and compliance requirements. We help owners select the most effective model to maximize recovery while maintaining fairness and transparency.

What is the benefit to the property management group to have a rubs billing structure?

A RUBS program allows property managers to recover utility expenses without the upfront cost of installing submeters. By fairly allocating costs to residents, properties reduce utility expense leakage, stabilize operating budgets, and improve net operating income (NOI). RUBS also encourages residents to be more mindful of their consumption, which can reduce waste and lower overall property costs. For management teams, this means less exposure to rising utility rates, improved financial performance, and stronger property valuations.

Can you handle compliance in highly regulated markets?

Yes. Our team actively monitors state and local regulations to ensure every billing program is compliant with applicable laws. From disclosure requirements to billing caps and reporting standards, we design programs that protect property owners from compliance risk while still maximizing recovery. With extensive experience in regulated markets, we take the complexity off your plate so you can focus on managing your property with confidence.