Many homeowner associations are voting to establish a Ratio Utility Billing System (RUBS) in order to reduce operating expenses.

A ratio utility billing system (RUBS) is a method or system that can be used in condominium associations to allocate utility costs among units. This is a far better alternative to paying the cost of installing individual meters for each unit which can be very costly. A ratio utility billing system can fairly allocate the cost of water, sewer, gas, common area electricity, and trash to each condominiums unit depending upon the formula the agreed.

It is no secret that utility costs are increasing substantially every year requiring boards to increase their association budget each year in order to remain solvent and not eat into reserves.

With a ratio utility billing system, increases in utilities require nor increase in the association's budget because increases in cost are automatically passed through to the owners as soon as they take place, they are not part of the budget.

Utilities can be allocated based on a number of factors including the number of residents in each unit, the number of bedrooms, the number of bathrooms, the number of water fixtures or the square footage of the unit. If preferred, a combination of factors can be used to develop a fair formula.

In addition to the fact that the cost of utilities is constantly and exponentially increasing, it is a fact that many owners and tenants do not conserve water and power when they never see an invoice for the cost or these services. In addition, a monthly invoice for utilities can be passed on to tenants who are renting a unit as part of the lease agreement. This helps both the owner and association save money.

Implementing a RUBS program encourages conservation because it makes owners aware of their monthly consumption and therefore encouraging conservation. RUBS is also a fair program eliminating situations where a single owner of a unit pays the same amount for water and other utilities as an owner with three or four residents.

While the normal cost of billing each unit must be considered, there is a cost to amend the association's CC&Rs to permit the association to separately assess each unit for utilities.

Please call us to set up a Zoom meeting to discuss setting up a RUBS program for your condominium association. You can start saving money almost immediately.