Stop Absorbing Utility Costs – Here’s How to Boost Your NOI Instantly

If you’re still paying for your tenants' water, sewer, and trash, you’re leaving thousands of dollars on the table every single year—and the worst part? It’s completely avoidable.

Most multifamily owners assume absorbing utility costs is just a necessary part of doing business. But in reality, it’s one of the biggest wealth-killing mistakes you can make. The good news? There’s a simple way to turn this around without submetering, without spending thousands on renovations, and without tenant pushback.

It’s called RUBS (Ratio Utility Billing System), and it’s a game-changer.

Let’s talk about:
✅ The #1 mistake multifamily owners make with utilities
✅ How RUBS can save you thousands every year
✅ A real case study of an owner who increased their property value by $500K—just by stopping utility absorption

🔹 The #1 Mistake Multifamily Owners Make With Utilities

Most property owners make the same costly mistake: they pay for utilities out of pocket instead of billing residents for their fair share.

It’s not hard to see how this becomes a problem:

• Water and sewer rates are rising every year (in some cities, by double digits).

• Owners assume tenants will resist paying for utilities.

• Many don’t realize just how much NOI they’re losing every year.

• Others think submetering is the only way to bill tenants (it’s not).

But here’s what institutional investors and large property management firms already know:
👉 Tenants are already used to paying for utilities.
👉 You don’t need submeters to bill tenants fairly.
👉 Utility expenses should not be treated as a landlord expense.

Let’s Talk About The Math (It’s Eye-Opening!)

To really see how much you’re losing, let’s look at some real-world numbers.

💡 Example: A 20-Unit Property
Imagine you own a 20-unit apartment complex, and you’re currently paying for the following utilities:

• Water & Sewer: $2,500 per month

• Trash: $500 per month

• Total Utility Costs: $3,000 per month

That’s $36,000 per year coming directly out of your pocket.

If you continue absorbing these costs, that’s $180,000 lost over just five years—and that’s assuming rates don’t increase (they will).

Now, let’s talk about how you get that money back.

🔹 How RUBS Saves You Thousands Every Year

RUBS (Ratio Utility Billing System) is a simple, legal, and effective way to fairly allocate water, sewer, and trash costs among tenants—without the cost of installing submeters.

Here’s how it works:
🔹 Instead of dividing the bill equally (which wouldn’t be fair), RUBS allocates costs based on usage factors like:
✔️ Unit size – Larger units tend to use more utilities.
✔️ Number of occupants – More people = higher consumption.
✔️ Other factors like bedroom count, depending on your local laws.

The best part?
✅ NO expensive submeter installations (which can cost $500-$2,000 per unit).
✅ IMMEDIATE impact—you recover costs in the next billing cycle.
✅ Tenants use less—when they’re responsible for their usage, they naturally conserve.

💰 How much does this save you?
Most RUBS users recover 80-90% of their utility costs, meaning in the example above, you’d recover $28,800 per year instead of throwing it away.

But the benefits don’t stop there.

🔹 The $500,000 NOI Boost – A Real Case Study

One of our clients had a 36-unit property with a major problem:
❌ They were paying $4,000/month for water, sewer, and trash.
❌ That’s $48,000 per year directly out of their profits.
❌ And they had NO way to increase rents due to local rent control laws.

They implemented Utility Ranger’s RUBS platform, and here’s what happened:
✅ They stopped absorbing their utility costs.
✅ 85% of their utility expenses were recovered—over $40,800 per year.
✅ Tenants used 20% less water once they were responsible for their usage.

Here’s the best part:
At a 5% cap rate, that additional $40,800 in NOI added $500,000 in property value.

Let’s put that into perspective:
🚫 They didn’t have to renovate units.
🚫 They didn’t have to upgrade amenities.
🚫 They didn’t have to increase rent.

All they did was stop absorbing costs—and they walked away with half a million dollars in added equity.

Why This Matters for BRRRR 2.0

BRRRR 2.0 is all about reducing expenses before raising rents to boost property value faster and with less capital.

Think about it—if you can:
✔️ Stop paying for utilities out of pocket
✔️ Instantly increase NOI
✔️ Add hundreds of thousands in property value
✔️ Scale faster without waiting for major renovations

…why wouldn’t you?

And unlike traditional BRRRR, you don’t need cash to pull this off.

🔹 How to Stop Paying for Utilities – Starting Now

If you’re still covering water, sewer, and trash for your tenants, you’re missing out on thousands in NOI and potential property value growth.

It’s time to take that money back—and Utility Ranger makes it simple.

🔹 Here’s how to get started:
✅ Step 1: Sign up for a 60-day free trial of Utility Ranger.
✅ Step 2: Let us help you set up RUBS for your property.
✅ Step 3: Start recovering your utility costs immediately.

📅 Click Here to Start Your Free Trial

Or if you’d rather talk it through, book a quick 15-minute call:

📞 Book a Call Here → Let's Chat

Final Thought: Don’t Be the Landlord Who Pays for Everyone’s Showers

You wouldn’t let tenants leave the lights on all day if you were paying the electric bill—so why keep footing the bill for their water and trash?

With Utility Ranger, you stop the drain on your profits and start billing fairly—just like the big guys do.

Don’t wait another year losing thousands. Let’s get your RUBS program started today. 🚀