Unraveling Utility Billing Myths Among Housing Providers

posted on : October 8, 2024 0 Comment

By Daniel Sharabi

There is no question that Ratio Utility Billing Systems are a benefit to housing providers. Regardless, conversations around RUBS among uninformed housing providers can lead to confusion and misconceptions regarding Ratio Utility Billing Systems.

While more traditional methods, such as flat fees or equal splits, offer simplicity, they lack fairness and precision. Enter Ratio Utility Billing Systems (RUBS), an ideal solution for a fair and streamlined billing process. Less-than-seasoned housing providers may share a laundry list of negatives they’ve heard regarding RUBS. Check out these common misconceptions of housing providers surrounding Ratio Utility Billing Systems that we are here to debunk.

MYTH #1: RESIDENTS WILL THINK I’M BEING UNFAIR

A concern among housing providers is that RUBS might not be perfectly fair. Residents who conserve utilities like water might end up subsidizing those who use more. This can lead to frustration and disputes. Explaining the logic behind the formula can be an uphill battle in the eyes of a housing provider.
Residents in well-maintained units with newer, more efficient dishwashers and low-flow showerheads might feel they’re subsidizing those who use more water, creating tension between residents and potentially leading to finger pointing and resentment toward the housing provider.

MYTH BUSTED

The right RUBS system can factor in square footage, occupancy and more so that billing is both
transparent and fair. Residents should be able to see how their bills are calculated and why the bill is what it is. Housing providers can also offer a “goodwill deduction” for any reason, including for a resident who has concerns about subsidizing other residents unfairly.

MYTH #2: COMPLIANCE WILL BE A HEADACHE

RUBS regulations can vary by location. Housing providers need to be sure they are following all the rules to avoid legal issues and many don’t want to take on that headache. Maintaining accurate records of occupancy changes, appliance upgrades, and historical usage data is crucial for a fair RUBS system. Housing providers may fear finding themselves dealing with the burden of meticulous record keeping to avoid legal trouble.

MYTH BUSTED

The right RUBS platform has compliance assistance built in. “At Livable, we provide a lease addendum for our housing providers so they are covered legally,” Sharabi explains. “Of course, housing providers need to make sure that they are in compliance with all local ordinances and regulations, but the lease addendum goes a long way toward achieving that.”
“We do always recommend that you check with your attorney before implementing RUBS for your residents, but our system is designed to aid with compliance for housing providers.”
“Livable Pro is so easy you can do it yourself,” Sharabi says. “We designed a user-friendly interface that makes it simple to set up RUBS. Just plug in the information as asked and you’re all set!”

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MYTH #3: IMPLEMENTING RUBS IS MORE TROUBLE THAN IT’S WORTH

Setting up RUBS properly requires choosing a fair formula, clearly communicating it to residents, and handling disputes fairly. This can take time and effort and many housing providers are reluctant to try.

MYTH BUSTED

“Livable Pro is so easy you can do it yourself,” Sharabi says. “We designed a user-friendly
interface that makes it simple to set up RUBS. Just plug in the information as asked and you’re all set!”

MYTH #4: RUBS IS ONLY FOR BIG COMPLEXES OR HIGH-RISES, NOT SMALL OWNERS LIKE ME

Some housing providers may believe that ratio utility billing only works or makes financial sense if you have a lot of units to bill.

MYTH BUSTED

“We created Livable Pro for the independent rental owner,” says Dan Sharabi, CEO of Livable. “Livable has never had unit minimums or a required commitment. We want housing providers to be able to hold residents accountable for their use, driving conservation, whether they have one rental unit or 1,000.”

CONCLUSION

Even with well-defined guidelines, disputes about RUBS bills may occur. Housing providers often fear being caught in the middle, mediating between residents who feel unfairly charged and the need to maintain a fair system for everyone. Housing providers considering RUBS should be prepared to navigate these potential resident concerns and ensure they have fully accessed the resources RUBS provides to effectively implement and manage the system. The reality is that the benefits of RUBS far outweigh the effort required for it to revolutionize your
billing. Ratio Utility Billing is a cost-effective way to allocate utilities, save you money and practice good conservation. Housing providers should explore the benefits of RUBS for themselves before listening to outside misconceptions.