The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: CheapTrick on June 21, 2016, 05:10:07 PM
-
I live in an apartment complex that uses Ratio Utility Billing (RUBS). Basically, they divide their total utility bill by a factor accounting for your occupancy or size of apartment to determine your "fair share." (I don't think it's very fair, actually - 2 people pay only 1.6 times as much as I do, and I also know that many people have SO not on their lease staying in the apartment. That doesn't affect rent, but does impact this calculation).
I pay a $5.48 fee every single month to a third party whose sole job is to generate the statements and do collections for the management company. This fee accounts for at least 10% of my bill every month. To me, this is something the management company should pay for. They get a portion of my rent to manage the whole process, why should I pay an additional admin fee on top of that? Sure, it's in the lease (I checked), although they do not specify the amount of the fee. I could have been charged $100 a month admin fee and not be able to stop them!
My question is for anyone who has dealt with such a system: what is considered a reasonable fee for the administration of RUBS? Landlords, have you been quoted for this service?
In the future, I'll avoid ever having an apartment with such a system. I dislike not being able to benefit from conserving energy myself, and I think that charging such a high fee for creating the bill is nuts. This is not even for paying with a credit card or anything, just a fee tacked on every month.
By the way, I looked up the company on BBB and Yelp and they have quite a few negative reviews. It's American Utility Management, Inc.
-
I do this for my tenants for free.
-
I have some apartments and use a submetering service, which is a little different bc they actually measure the tenants' heat usage and calculate their portion of the gas bill. They charge the tenants $5/mo for this.
-
I have some apartments and use a submetering service, which is a little different bc they actually measure the tenants' heat usage and calculate their portion of the gas bill. They charge the tenants $5/mo for this.
Same here, for water and sewer. Required (in my case) paying for meters + install, about $250 per unit total. Seemed like the more fair approach than RUBS. Tenants have been fine with it in one property (a side-by-side duplex) and pretty difficult about it on another (an up/down duplex). Landlords in the area generally pay for water and sewer in multifamily, so it presented some challenges.
On the up/down duplex, I ended up renewing leases with a clause saying I would pay up to $x per month in water and sewer, and the tenants would be charged for the overage. I estimate it will add about $30-40/month/unit to my cash flow, and incentivizes the tenants to save, all while being responsible only for their own usage.