# RUBS: (RATIO UTILITY BILLING SYSTEM)

RUBS: (Ratio Utility Billing System)

A Ratio Utility Billing System allocates the property’s actual utility bill to the residents based on the exact amount of the utility bill along with the occupant factor and square footage at the property. The allocation is calculated and disbursed to each tenants’ portal automatically by our AppFolio Property Management software as the utility bills are received during the month.

Allocation procedures: The allocation method that will be used in calculating your utilities is according to actual occupancy (this includes minors) and square footage in a multiplex.

Units with Equal Square Footage: If each unit has the same square footage, the total amount of the invoice is simply divided by the total number of tenants (including minors) living at the property. If applicable to the property, the amount for common areas is divided equally among occupied units. For example:

Unit 1 – 1000sqft: One Tenant

Unit 2 – 1000sqft: Three Tenants

Utility Bill = \$100

Total Number of tenants = 4

Unit 1 charge = \$25

Unit 2 charge = \$75

If applicable:

Common Area Portion = \$40

Total Number of units = 4

Charge for each unit = \$10

Units with Unequal Square Footage: If the units within a multiplex DO NOT have equal square footage, the utility bills are allocated as follows:

Unit 1 – 1000sqft: One Tenant

Unit 2 – 2000sqft: Three Tenants

1. The total amount of square feet is totaled, and the total amount of tenants are totaled:

• Total Number of Square Feet = 3000
• Total Number of tenants = 4

2. The total amount of the square feet is divided by the total number of tenants:

• 3000sqft divided by 4 = 750sqft

3. Each unit's square footage is then divided by that square footage result to produce a decimal that will be used to calculate the amount of the utilities allocated to each unit:

• Unit 1: 1000sqft divided by 750sqft = 1.3
• Unit 2: 2000sqft divided by 750sqft = 2.7

4. The total utility bill is then divided by the total number of tenants living at the property:

• Utility Bill = \$100
• \$100 divided by 4 = \$25 (\$25 is charged for each 750sqft of the property)

5. That result is then multiplied by the decimal that resulted from calculating the square footage:

• \$25 multiplied by 1.3 = \$32.50
• \$25 multiplied by 2.7 = \$67.50

As a result:

• Utility Bill = \$100
• Unit 1 charge = \$32.50
• Unit 2 charge = \$67.50

If applicable to the property, the amount for common areas is divided equally among occupied units. For example:

Common Area Portion = \$40

Total Number of units = 4

Charge for each unit = \$10

Reason for allocation: Whenever full or partial utilities are paid by the property owner, residents do not have knowledge of the usage of utilities (especially water) and have no incentive to conserve this valuable resource. This results in a waste of our state’s natural resources and adds to the overhead of the property—which leads to higher rents. Allocation of utility bills saves money for residents because it encourages conservation to keep utility costs lower while lowering overhead for the owner and the need for dramatic rent increases.