Utility Reimbursement Ratio Calculator

Utility recovery ratio measures billing efficacy.

Total utility cost

Amount recovered

Recovery ratio

0.8%

Landlord absorbed

$85,000

Gap to 90% target

$37,000

How the math works

Recovery = recovered / total. Absorbed = total − recovered. Gap = 90% × total − recovered.

$395k / $480k = 82.3% recovery. $85k absorbed. $37k gap to 90% target.

How to Use

Enter total utility cost.
Enter amount recovered.
Read recovery ratio.

Frequently Asked Questions

Benchmark?

Submetered (direct billing): 95-100% recovery. RUBS (ratio): 70-85%. Billed via rent increase: 50-70%. Unit-metered w/ landlord paying: 0%. Best-in-class operators target 85%+ aggregate across portfolio.

Why gaps?

Common areas not billable. Vacancy periods landlord absorbs. Non-reimbursable components (water loss). Admin fees capped. RUBS allocation inaccuracies. Billing delays and losses. Each leaks 5-20% of potential.

Improving?

Submetering installation ($500-1500/unit). RUBS calculation refinement. Third-party billing providers (RealPage, NWP). Rate card simplification. Accurate tenant education. Small investments can move needle 10-20%.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.