What Is RUBS (Ratio Utility Billing)?

Many older and smaller buildings have one water meter, one trash contract or one gas meter for the whole property. A ratio utility billing system (RUBS) recovers some or all of that bill from tenants by a formula instead of a meter in each unit. Common formulas use each unit's square footage, its number of occupants, its number of bedrooms, an equal share per unit, or a blend of these.

Before billing, the lease should say that utilities are billed separately, which utilities, the method and any fee. Many owners keep a share for common areas such as landscaping, a pool or a laundry room, and keep vacant units' shares rather than passing them to other tenants. States and cities regulate this differently: Texas, for example, sets the allowed methods and disclosures for water and sewer in 16 TAC §24.281.

RUBS is an estimate, not a measurement: a tenant who uses little water pays the same as a neighbour with the same square footage and household size. Submeters measure actual use but cost money to install and read.

Last reviewed 2026-11-04. General information, not legal advice. Check your lease and your state and local law.