Join Vee Khuu and Sarah Hoverson as they talk about the basics and benefits of RUB systems. Sara is the account executive of Livable, helping property owners and investors increase their ROI and decrease their expenses. Livable is a utility billing and management company that provides an efficient system to consolidate billing. But, how do these systems work, and why you consider implementing such a service? All these and more, on the Real Estate Lab!
Livable: RUB System, or “Rob” System?
RUB systems are essentially a reimbursement to property owners for utility expenses. These systems look at the meters for all your utilities (gas, water, electricity, even landscaping, etc.) and divide the bill among all the tenants. They do this through a billing software that can also be integrated with the property management software that’s in use. When you look at a duplex unit, it may prove to be a substantial upfront investment to install submeters, and some older properties don’t have physical means to have a sub-meter installed! The alternative solution would be to go for a RUB system, where it’s an estimation based off of multiple factors (historical data, occupancy, square footage, and unit amenities like dishwashers and washer dryers) and the details on the master meter utility bill and dividing it amongst the tenants. Livable has a billing platform where tenants can view their bills and also see the allocation table for transparency. They’re even open to tenants who’d challenge their calculations!
A Reluctance to a New Normal in Billing
The perception of these new programs needs to be justifiable. Just because something is new, people might have the tendency to be hesitant. Many think that it won’t work for them because they don’t want to cause trouble for their tenants. But the thing is, there are ways to introduce the program slowly, like using the system as a monitoring service for a few months to cultivate a sense of accountability, and incrementally passing through the charges over time. Another reason why owners may not be open to this modern program is that they want to continue flat rate billing as they’ve been doing for many years already. However, the problem we encounter with flat rate billing is that you run into the risk of either overbilling your tenants or covering for their excessive usage. Imagine the overhead costs you could reduce! The fairest and most accurate way to get rid of these excess payments is through implementing RUB systems, where consumption is directly tied to your tenants’ wallets. This gives them the chance to use less and be more empowered to make better choices!
If you want to learn more about RUB systems, listen to the full interview on the Real Estate Lab!
Livable is the choice Utility Management Platform for both residential and commercial property stakeholders, and we’re putting savings at the forefront of what we do. Whether you operate 2, or 2,000 units, our goal is to provide you with a simple way to recover utility costs, increase the value of your investment, and build a community around conservation.
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