RUBS vs Submetering: Full Comparison
- DrizzleX
- Jul 8
- 8 min read
When utility costs go up, so do complaints. Many property managers struggle to split utilities, such as water, fairly.
Some tenants overuse, while others end up paying for it. You try to keep things simple, but it often leads to more frustration, not less.
You’re not alone. Every multifamily building faces the same challenge: how to bill tenants fairly and keep costs low. That’s where the debate of submetering vs RUBS comes in.
In this article, we’ll walk you through both options. You’ll learn how each system works, what it costs, and which one is the better way to save on water utilities in your building.
What Is RUBS?
Ratio Utility Billing System (RUBS) is a way to split utility bills among tenants when a building has a master meter.
This means there’s one meter for the whole property, not individual meters for each unit. Since it’s not always possible or affordable to add separate meters, many property managers turn to RUBS.
RUBS is one of the two methods often used to bill tenants. RUBS uses an industry-accepted formula based on things like the number of people in a unit, square footage, or the number of bathrooms.
Utility companies send the bill to the property owner or manager. Then, the total amount is divided among tenants using the RUBS method. This makes it easier to recover utility costs when submetering isn't an option.
RUBS can work well in buildings with a mixed tenant group, or tenant mix, since the formula helps adjust for fair use. It’s often used for water, gas, and sometimes trash.
Advantages and Disadvantages of RUBS
RUBS is a simple and affordable option for utility billing, especially when submetering isn’t possible. But like any billing method, it has its pros and cons.
Let's first look at the pros of RUBS.
Works without individual meters, making it a good fit for older buildings
Easy to set up and does not require ongoing maintenance or new equipment
Uses unit square footage, number of occupants, or amenities to divide bills fairly
Helps recover utility costs even when submetering isn't an option
Avoids mechanical issues that can happen with meters
Now, let's look at the cons of this type of utility billing.
May not reflect exact usage, which can feel unfair to some tenants
Some states limit or regulate RUBS, so you must check local rules
Tenants with fewer people or lower usage may feel overcharged
Not as accurate as submetering, especially in properties with varied tenant use
Disputes can happen if the tenant mix varies widely within the building
RUBS can be helpful when used right, but it’s important to know your building and your tenants before choosing this method.
What Is Apartment Submetering?
Apartment submetering is a way to track how much water or energy each unit in a building uses. Instead of using one master meter for the whole building, submetering breaks it down by unit.
In a submetering system, there are two main ways to measure: through unit meters or micrometers.
A meter is a device that measures water and can be installed at either the unit or building level.
A micrometer is a small water-saving device installed at each water fixture, like sinks or showers. It measures every drop that passes through. The readings from all micrometers in a unit are added up to show that unit’s utility usage.
Submetering technology gives property management a more accurate way to bill tenants and help them understand their consumption habits.
Advantages and Disadvantages of Apartment Submetering
Apartment submetering is a smart way to track how much water or energy each unit uses. Submetering may also come with trade-offs. Here's a look at the main pros and cons.
Let's look at the pros of apartment submetering:
Helps with fair billing by charging tenants for their own usage
Gives residents greater control over their utility bills
Encourages tenants to conserve utilities and reduce water waste
Can offer data to residents so they can track their own use
Often matches tenant preferences for transparency and accuracy
Helps lower overall utility expenditure for the property
Now, let's look at the potential drawbacks:
Costs more to install and may need changes to plumbing or wiring
Not all buildings are set up for installing submeters, especially older ones
Needs regular meter checks or software to track use
Repairs and tech support may be needed from time to time
It may be harder to manage in small buildings or with frequent tenant turnover
Is RUBS Unfair to Tenants?
Many people question whether RUBS is a fair way to charge utilities to tenants. Let's look at two sample scenarios, and you can judge whether RUBS is fair or not.
Scenario 1
The Johnson family is a quiet couple in their 60s who live in a ground-floor unit. It’s just the two of them, and they’re pretty conservative with utilities - short showers, full laundry loads, and reusing cold shower water to water their plants.
Their upstairs neighbors are a group of five college students who host parties every weekend. The dishwasher runs constantly, and guests come and go at all hours; classmates are coming to do their laundry in their unit.
Yet under the RUBS system, both units are billed the same, based on square footage.
Mrs. Johnson called the management office, fuming:
“How are we using the same water and trash as the five guys upstairs? This is theft.”
Scenario 2
Marcus lives in a studio at the edge of the complex. He’s meticulous about his water use - quick showers, no dishwasher, barely does laundry since he dry-cleans most of his clothes. But every month, his water bill feels high.
Turns out, a big chunk of it comes from shared water usage like outdoor hose bibs, lobby cleaning, and even leaks in common-area plumbing. Since the building uses RUBS, these costs get divided up based on square footage.
Marcus is fed up:
“Why am I paying for someone hosing down the courtyard or a leak in a hallway pipe? That’s not my water use, it’s just lazy billing.”
He’s now questioning how much of his “usage” is actually his at all.
Verdict
In both cases, RUBS seems pretty unfair to tenants.
The Johnsons, who carefully limit their water usage, end up paying extra because their neighbors use more utilities.
Marcus, who barely uses water, still has to pay for leaks and shared spaces, costs completely outside his control. The system feels like it's punishing you for trying to save water.
While some property managers prefer RUBS because it’s easy to implement, it doesn’t always feel fair from a tenant’s perspective. Tenants who conserve resources understandably feel frustrated seeing no reduction in their monthly bills.
To treat everyone fairly, property managers should use systems that charge based on actual usage.
Why Submetering Is Better Than RUBS for Property Owners
RUBS may seem easier at first, but submetering offers many more benefits to property owners and property managers. Let's discuss it below:
Accurate Billing Encourages Savings
Submetering tracks each unit’s actual use. This means tenants pay for what they use, not what others in the building use.
It also makes billing more transparent. When tenants know they're only paying for what they use, it builds trust and reduces complaints. Over time, this can lead to lower utility use and fewer disputes.
Better Cash Flow and Fewer Complaints
For property managers, this system improves cash flow. Bills are easier to explain, and you’ll get fewer complaints.
Plus, working with a good utility billing provider makes the process simple. Many providers can rapidly create detailed reports and handle the billing side for you.
Boosts Property Value
Submetering can also increase property value. Investors often see accurate utility billing as a sign of strong operations.
So, while it may cost more upfront, submetering pays off over time with savings, fewer issues, and better results for the whole property.
Get All the Benefits of Submetering With DrizzleX
Most apartment buildings in the U.S. were not built with submetering in mind. That leaves property managers relying on guesswork or outdated methods like RUBS to divide up water bills.
DrizzleX offers a better submetering solution for property managers and landlords. Let's look at how DrizzleX helps you simplify water management in your property.
Save Water With DrizzleX's Submetering
DrizzleX helps save water in apartment buildings by showing exactly where and how it’s being used. With micrometers installed at each fixture, property managers can see if a toilet is running too long, if a shower is leaking, or if water is being used at odd hours.
With DrizzleX's Water Consumption Insights Report, you can spot high water usage, track savings over time, and make smart changes that lower your property's monthly water bills.
How a Peoria Property Cut Water Costs by 67% With DrizzleX
DrizzleX helped a property in Peoria, IL, save 67% on water use and costs in just one year.
The property had 57 units and 114 tenants. Before using DrizzleX, the building used about 20,487 gallons of water each day.
After installing DrizzleX, daily water use dropped to 6,852 gallons. That’s a big drop, as each tenant went from using 180 gallons a day to just 60.
Monthly water costs also dropped from $81.30 per unit to $27.19. This resulted in a total savings of $37,525 over the year, or about 9.6 HCF (hundred cubic feet) saved per unit each month
This case shows how smart water monitoring can cut waste and lower bills in multifamily buildings.
Monitor Water Consumption Effortlessly
Instead of installing one meter per unit, DrizzleX uses small micrometers at each water fixture, like toilets, showers, and sinks. These micrometers measure how much water each fixture uses.
Together, they give a full picture of the unit’s water usage. This means property managers can now get accurate, unit-level data without tearing into walls or making major changes to plumbing.
Detect Water Leaks Before They Become a Problem
Leaks that go unnoticed can lead to high bills, angry tenants, and even costly repairs. Even just a running toilet can cost hundreds of dollars if left long enough. With DrizzleX, you can catch these problems early.
The system tracks water use at each fixture, so if a toilet is running or a shower is leaking, you'll see it in the data. This helps prevent water damage, which can be expensive and time-consuming to fix.
Stop Pouring Money Down the Drain, Save With DrizzleX
Every drop of wasted water adds up. High utility bills, hidden leaks, and unfair tenant charges hurt your bottom line.
DrizzleX gives you clear, fixture-level tracking so you can finally see where water is being used and where it’s being wasted. No guesswork, no expensive plumbing changes, just real data that helps you make smarter decisions.
Whether you manage a small building or a large property, DrizzleX helps you cut costs, prevent tenant water damage, and stay ahead of hidden problems. It’s fast to install, simple to use, and proven to deliver results.
FAQs About RUBS vs Submetering
What is the difference between RUBS and submeter?
The main difference between RUBS and submetering is how utility usage is tracked. Submetering uses physical equipment to measure each unit’s actual usage, while RUBS splits utility costs based on unit size, number of occupants, or other factors.
RUBS doesn’t track individual consumption, but it’s useful for older buildings where submeter installation is hard or expensive.
When comparing rubs vs submetering, it comes down to accuracy vs lower upfront costs.
What are the disadvantages of submetering?
Submetering can be expensive to install and maintain, especially in older buildings with outdated plumbing configurations. If meters break or aren’t read regularly, the billing process can get delayed.
It also depends on local laws and the property infrastructure, which may not always support individual meters for water or energy usage.
Submetering works best when accurate billing is a top priority and upfront costs aren’t a problem.
What are the cons of RUBS in the billing process?
RUBS utility billing is less accurate because it doesn’t reflect a unit’s actual usage. Tenants who use fewer utilities may feel the billing system is unfair, especially if costs are based only on square footage or number of occupants.
This can lead to lower tenant satisfaction and less control over energy usage. Unlike submetering, RUBS doesn’t help residents track or reduce utility consumption.
What is the RUBS billing method?
RUBS stands for ratio utility billing system. It’s a method where utility costs are divided among tenants based on things like unit size, number of occupants, or historical data. Property owners use RUBS to increase utility cost recovery without installing physical equipment.
It’s often used by a utility billing company when submetering isn’t possible due to the building setup.
This method can quickly help recover utility expenses, but doesn’t measure actual consumption.
