Owning a multifamily billing, complex or even manufactured home community includes a lot of tasks and management requirements. Often one of the most challenging is to determine how to effectively and fairly manage utility billing.
Past Solutions
In the days before smart meters and automatic meter reading, the most effective option for most property owners was to use a ratio utility billing system, also known as a RUBS. This system uses a combination of square footage of the rental unit and occupancy numbers to split the total water bill for the complex per month. These systems can become very complex, and it is not uncommon for tenants to dispute their charges frequently with this type of billing system.
Another common option was to simply divide the bill by the number of similar units, without consideration for occupancy. The most frequently used option for many landlords was to simply charge a flat rate, which sometimes meant the landlord made up the difference in periods of high water consumption.
A Better Solution
Today, a submetered option combined with a fully managed utility billing system avoids any work required by the landlord. Once the smart meters are installed, which is typically a relatively short, easy and low-cost option, the tenants are billed by the utility billing company. This same company also collects payments for the landlord, freeing up the property owner or manager to deal with the day to day tasks.
When comparing option in a utility billing system, consider the time, the cost and the effort that is required by the landlord. While the installation of smart meters does have an initial cost, this is usually very low, with no further requirements for the landlord to worry about billing or collection.