A Full Service Real Estate Company since 1974
Peace of mind means knowing that your property is in good hands


What Are R.U.B.S. and How Does it Affect San Jose Renters and the Property?
6 21, 2017

The R.U.B.S. program in San Jose stands for Ratio Utility Billing Service. It's especially effective in multi-family housing units, but it can be utilized by landlords that own any kind of property to conserve resources and share the burden of utility payments.

How R.U.B.S. Works

Under this system, each resident pays a ratio of the common utilities, which covers water, sewer, and trash. The property owners pay around 25 percent of the overall cost, and the tenants living in the property pay about 75 percent, depending on the square footage of the property and the number of people who are living in the unit. The tenants pay a larger share of the bill because they are the ones occupying the property and using the water, sewer services, and trash collection.

How R.U.B.S. Conserves Water

This is part of a conservation plan because tenants will want to reduce their bill and pay as little as possible. That means they'll be conscious about the amount of water they use and more likely to conserve precious resources. After the drought that plagued California recently, everyone is more conscious about conservation and working hard to do more with less.

How R.U.B.S. Benefits Owners

This is a great plan for owners because they are not left to cover the entire cost of the water, sewer, and trash bill for their tenants. While this cost is often be rolled into the monthly rent, it's hard to anticipate exactly how much water a tenant will use and can reduce your investment return. With this ratio billing system in place, you are having your tenants pay most of the bill, so if the usage rates increase, you will not have to bear most of that increase. This will keep your expenses low, help mitigate rates and usage increases, and increase your rate of return.

If you have any questions on the Ratio Utility Building Service, or anything regarding San Jose property management, please don't hesitate to contact us at Zell Associates, Inc.