Ratio Utility Billing System
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| This article, Ratio Utility Billing System, has recently been created via the Articles for creation process. Please check to see if the reviewer has accidentally left this template after accepting the draft and take appropriate action as necessary.
Reviewer tools: Inform author |
| This article, Ratio Utility Billing System, has recently been created via the Articles for creation process. Please check to see if the reviewer has accidentally left this template after accepting the draft and take appropriate action as necessary.
Reviewer tools: Inform author |
Comment: Sources are either primary (like government sites) which should be used very sparingly and/or not reliable (commercial sites offering products and services). I suggest looking for scholarly papers such as studies by academics about the impacts of RUBS. (Side note: it is covered in the Utility submeter article]]). S0091 (talk) 16:58, 4 May 2025 (UTC)
- Comment: I'm not sure if you're stating your own criticisms or not in the relevant section because there are no sources. Please note we really don't need "editor's opinion" stuff in articles. ABG (Talk/Report any mistakes here) 00:47, 4 February 2025 (UTC)
The Ratio Utility Billing System (RUBS) describes any method used to determine the amount of a fee which is labeled to represent a landlord's business expense (typically but not necessarily a utility expense) and is charged to a tenant by a landlord, but not based on actual consumption of the utility or expense-incurring resource by the tenant.[1][2]
Typical landlord expenses in this system include but are not limited to water, sewer, electric utilities or internet service.[3] There is no requirement that the total fee revenue be less than or equal to the landlord expense to which it is related and there is no set method to calculate the fee.[4]. However, state and local ordinances may impact the fee calculation.[5] RUBS is not legal in all US states.[6]
The fee may have various names, but is often referred to as a utility fee. It is an additional fee paid to the landlord on top of the stated rent in the lease.[7] The IRS requires RUBS payments to be included in gross rent.[1] Landlords often use a 3rd party collector for this fee.
The contract structure created by the Ratio Utility Billing System is a lump sum (rent) plus estimated expenses incurred by the tenant (RUBS fees), also known as a cost plus contract.[8] [9] Such a contract may contain a Guaranteed Maximum Price (GMP) [10] [11] but in RUBS, they typically do not.
RUBS has been criticized for being non-transparent and onerous to dispute.[12][13]
References
- ^ a b "Utility Allowances Submetering". 1. Actual-Consumption Submetering Arrangements and Ratio Utility Billing Systems. 2016-03-03. Retrieved 2025-02-02.
- ^ "Maryland Statutes Text Real Property". Section 8-212.4.a.5. 2022. Retrieved 2025-02-02.
- ^ "Top 10 Reasons to Implement a Ratio Utility Billing System (RUBS)". What is Ratio Utility Billing System. 2023-10-12. Retrieved 2025-02-01.
- ^ "RUBS Billing". Custom RUBS Formulas. 2025. Retrieved 2025-02-03.
- ^ "Montgomery County Department of Housing And Community Affairs" (PDF). Multi-family Apartment Complex Ratio Utility Billing System. 2019. Retrieved 2025-02-02.
- ^ "PROVISION OF WATER AND SEWER SERVICE BY LESSORS" (PDF). Rule 18-6. Rates. Paragraph a (p.8). 2018-04-04. Retrieved 2025-02-02.
- ^ "Top 10 Reasons to Implement a Ratio Utility Billing System (RUBS)". Shift from Net Operating Expense to Net Operating Revenue. 2023-10-12. Retrieved 2025-02-02.
- ^ "Construction Contract Types" (PDF). 2025. Retrieved 2025-05-26.
- ^ "Cost plus contracts". Cost plus fixed fee contract FAR Section 16.306. 2024. Retrieved 2025-02-01.
- ^ Com, Netsuite (2022-09-05). "How Do Guaranteed Maximum Price (GMP) Contracts Work". Guaranteed Maximum Price (GMP) Contracts Explained. Retrieved 2025-02-02.
- ^ "Guidance On Using Incentive And Other Contract Types" (PDF). Cost Plus Fixed Fee Contracts (p.12). 2016. Retrieved 2025-02-02.
- ^ Tso, Phoenix (2025-05-08). "LA tenants demand their landlord stop charging hundreds of dollars in utility fees". LA Public Press. Retrieved 2025-06-16.
- ^ Too Damn High: How Junk Fees Add to Skyrocketing Rents (PDF) (Report). National Consumer Law Center. March 2023. Retrieved 16 June 2025.