Increase Your Income Property Bottom Line with RUBS via Multifamily Blogs

From Los Angeles to New York, and Anchorage to Key West, properly allocated utility responsibility and cost is a very important subject in the apartment rental business. As utilities are supplied to a rental property, they are typically split-up, or “branch off” to connect to individual units from the main supply. Ideally, these splits could then accommodate individual meters and shutoff controls. Ideally, each user of the utility being provided would then pay their fair portion of use.

In most newer construction properties that is indeed the case. In older properties, however, master metering for the entire property is something owners must often contend with. When properties are master metered this results in higher expense ratios due to utility costs and hence lower net operating income. Sometimes it is possible to split up the electrical and gas meters, but often this proves impossible. As for water and sewer costs, separate metering is virtually unheard of and these costs are almost never charged to tenants.

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