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Utility Reimbursement Calculator

Multifamily utility reimbursement uses one of three methods: even split, RUBS (Ratio Utility Billing System based on SF), or sub-metering. Each shifts utility cost from landlord opex to tenant pass-through, lifting NOI by $50-200/unit/mo. This calculator computes per-unit billing including the billing service fee and landlord-retained common-area portion.

$
%

Landlord absorbs

$

Tenant bill / unit / mo

$67

Annual reimbursement

$96,120

Monthly reimbursement

$8,010

Landlord-retained portion / yr

$10,200

How the math works

Three allocation methods: even split (simplest, equal per unit); RUBS - Ratio Utility Billing System (proportional to SF, common in multifamily without sub-metering); sub-meter (actual usage, fairest but requires capex).

Many states regulate utility billing — California Civil Code §1954.201 et seq, Texas PUC §295, etc. Tenants can sue if landlord profits beyond actual cost + reasonable billing fee.

How to Use

  1. Enter master utility bill, units, and allocation method.
  2. Enter common-area retention %, billing fee per unit, and avg unit SF for RUBS.
  3. Read tenant bill per unit, monthly and annual reimbursement.

Frequently Asked Questions

RUBS vs sub-meter?

RUBS no capex, ~80% accuracy, regulator scrutiny. Sub-meter $400-800/unit capex, 100% accuracy, fully defensible. Sub-meter pays back 18-30 months.

What can I charge for billing fee?

Most states allow $2-6/unit/month billing service fee. California caps it; Texas allows passthrough of actual third-party fee.

Disclosure requirements?

Most states require RUBS to be disclosed in the lease before signing. Failure to disclose voids your right to bill.

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