Demystifying RUBS - Understanding how RUBS works in a Multi-Family Property

Anthony A. Luna • May 16, 2024

Fair Utility Allocation: How RUBS works in your building

At Coastline Equity, we're committed to transparent and equitable utility billing practices. That's why we're using Ratio Utility Billing Systems (RUBS) in many of our multi-tenant properties. If you're a resident in one of these buildings, you might have questions about how RUBS works and how it affects your utility bill. We're here to break it down.

What is RUBS?

RUBS is a system designed to allocate the costs of shared utilities, such as water, sewer, trash, electricity, and/or gas, in a fair and practical way. Instead of requiring individual meters for each utility in every unit, which can be costly, RUBS uses a formula to divide these costs among tenants based on factors like unit size and occupancy.


Why Use RUBS?

RUBS offers several key benefits:

  • Fairness: RUBS ensures that everyone contributes their fair share, preventing situations where residents who use a lot of utilities are subsidized by those who are more conservative.
  • Cost Savings: By eliminating the need for individual meters, RUBS reduces installation and maintenance expenses for property owners, which can help keep overall costs down for everyone.
  • Environmental Responsibility: Because RUBS encourages residents to be more mindful of their consumption, it can contribute to water and energy conservation, benefiting both the environment and our wallets.

How Does RUBS Work?

Each building using RUBS has a customized formula that considers:

  • Unit Size: Larger units generally use more utilities.
  • Number of Occupants: More occupants in a unit usually mean higher consumption.
  • Building Characteristics: Factors like the building's overall energy efficiency and seasonal changes in utility usage are also taken into account.

Calculate the impact of RUBS on your property

Common Questions About RUBS

  • "Is RUBS fair if I'm already careful about my utility usage?" We understand this concern. While RUBS might not directly reflect your individual usage, it ensures everyone contributes fairly based on the shared resources of the building. By promoting overall conservation, RUBS can actually lead to lower overall utility bills for everyone in the long run.
  • "What if I believe my RUBS bill is incorrect?" We strive for accuracy in our calculations, but errors can happen. If you have concerns about your bill, please don't hesitate to contact your property manager. They'll be happy to review your bill with you and address any questions.
  • "Can I appeal my RUBS charges?" Yes, you have the right to appeal your RUBS charges. We have a clear and transparent appeals process in place. Your property manager can provide you with the details of the appeals process specific to your building.
  • "Does my lease need to mention RUBS?" Yes. Your lease agreement will outline the use of RUBS at the property and detail how your portion of shared utility costs is determined.
  • "How is the RUBS formula determined for my building?" The formula is carefully developed based on the specifics of your building, taking into account local regulations, industry standards, and fairness to all residents.
  • "Are RUBS costs considered part of my rent?" RUBS charges are separate from your base rent. They appear as a separate line item on your billing statement.
  • "What if I have a roommate and we disagree about our utility usage?" While we can't mediate roommate disputes, we encourage you to discuss conservation efforts and responsible utility use with your housemates.


Tips for Reducing Your RUBS Bill

  1. Even with RUBS, you can take steps to reduce your share of utility costs:
  2. Conserve Water: Take shorter showers, fix leaky faucets promptly, and only run full loads of laundry and dishes.
  3. Be Energy-Wise: Turn off lights when you leave a room, unplug electronics when not in use, and consider investing in energy-efficient appliances.
  4. Minimize Trash: Recycle and compost whenever possible to reduce the volume of trash generated by your unit.


We're Here to Help

At Coastline Equity, we believe that transparent and fair billing practices are essential. We're committed to providing clear information about RUBS and addressing any concerns you might have. Your property manager is your primary point of contact for questions about RUBS and your individual bill.


Together, we can create a more sustainable and cost-effective future for our communities.


Let's elevate the industry together—share this blog with fellow investors.

A property owner studying a detailed roadmap as a guide.
By Anthony A. Luna January 7, 2025
Discover how property owners and investors can turn the 2025 property management regulations into opportunities for growth, tenant retention, and long-term success. Learn key updates and actionable strategies today.
A close-up of a credit card fee form, symbolizing transparency
By Anthony A. Luna December 5, 2024
Learn how California's AB 2493 improves transparency in rental application fees. Discover what landlords need to do to comply and enhance trust with applicants.
A service member in uniform saluting, symbolizing the protections and fee limits
By Anthony A. Luna December 4, 2024
Discover how California's SB 611 protects service members by limiting rental fees and enhancing compliance with the Servicemembers Civil Relief Act (SCRA). Learn your rights and responsibilities.
A property manager reviewing a paper copy of a credit report
By Anthony A. Luna December 3, 2024
Learn how California's AB 2747 requires landlords to offer rent payment reporting to credit bureaus. Discover the benefits, compliance steps, and impact on property management.
Show More

More about Coastline Equity

  • Property Management Services

    Skyscraper

    Our team will handle all your property needs, offering specialized services such as in-depth inspections, liability management, staff recruitment and training, and round-the-clock maintenance—expert support tailored to the unique requirements of your real estate assets.

    Learn More
  • About Us

    Look at the future of property management

    Our dedicated team transforms property management challenges into opportunities. From tenant management to streamlined rent collection and proactive maintenance. 

    Learn More
  • Property Management Excellence

    Anthony A Luna CEO

    As a contributing author for Forbes, Anthony A. Luna brings a wealth of expertise and knowledge in the property management industry, real estate sector, and entrepreneurship, providing insights and thought-provoking analysis on a range of topics including property management, industry innovation, and leadership.


    Anthony has established himself as a leading voice in the business community. Through his contributions to Forbes, Anthony is set to publish his first book, "Property Management Excellence" in April 2025 with Forbes Books.

    Learn More
  • Insights

    Discover property management

    Learn more about Coastline Equity's property management practices & processes and how we support our clients with education and a growth mindset.


    Coastline Equity Property Management is your partner as you continue to learn and grow.

    Learn More

News & Updates

By John David Sarmiento April 11, 2025
Setting the right rent isn’t just about earning income — it’s about finding the balance between maximizing cash flow and keeping your property consistently occupied. So, what exactly is fair rent for your property? Whether you're renting out a single-family home, an apartment, or a unit in a multi-family building, finding a fair rental price starts with a thoughtful look at your property, your market, and what today’s renters are willing to pay. Start with Comparable Rentals The best way to find a fair rent is to research comparable rentals in your area. Look for listings similar in: Square footage Number of bedrooms and bathrooms Neighborhood Condition and amenities Platforms like Zillow, Apartments.com, or Rent.com are a great place to browse rental listings and compare active prices. If you’re seeing similar units listed at a higher rate than yours — and they're still on the market weeks later — that could be a sign they’re overpriced. Units that rent fast tell you what renters are actually willing to pay. Real Example: Pricing a 2-Bedroom in Long Beach Let’s say you own a 2-bedroom, 1-bath apartment in Long Beach with around 900 square feet. You check listings and find similar properties renting for $2,300 to $2,500. Zillow shows a rent zestimate of $2,400 — a decent starting point, but not the full picture. After looking at how long listings have stayed active and talking to a local property manager , you find out that well-maintained units with in-unit laundry and parking are consistently getting rented at $2,350. You price your unit accordingly, giving yourself a competitive edge while still earning market value. Avoid Relying on Algorithms Alone Automated pricing tools like the rent zestimate are useful for a ballpark figure, but they often miss local demand shifts, recent upgrades, or what renters truly value in your neighborhood. Use them as one data point — not your final decision-maker. Other Factors That Influence Fair Rent Your final rent amount should reflect more than just comps. Consider: The property’s condition: Have you renovated or upgraded appliances recently? Extras included: Are you covering any utilities? Is there secure parking or outdoor space? Seasonality: Rental demand can vary throughout the year. Your goals: Are you focused on fast occupancy or maximizing revenue? Professional support: A trusted rental manager or property manager can offer current insights based on tenant activity, vacancy rates, and pricing trends.  How Property Managers Help You Set the Right Price If you're unsure what to charge, a local property manager can evaluate your unit, compare it to others in your area, and recommend a pricing strategy that balances demand and return. They also help adjust your price over time as rental rates shift, and they’ll guide you in attracting and retaining quality tenants who value both the price and the property. Final Thoughts So, what is fair rent for your property? It’s the price that matches what your unit offers, reflects the current market, and appeals to qualified renters. It’s not necessarily the highest number possible — it’s the one that helps you rent quickly, reduce turnover, and maintain steady income. With a little research, a realistic view of your property’s features, and guidance from local experts, you’ll be well-positioned to price your rental right — and keep it occupied with great tenants.
By John David Sarmiento April 10, 2025
One of the most delicate parts of owning a rental property is figuring out how to increase the rent without driving away good tenants. While you want to stay competitive with market rates , it’s equally important to maintain stable occupancy and avoid costly turnovers. The good news? With the right strategy and timing, raising rent doesn’t have to come at the cost of your tenant relationships. 1. Know Your Local Market Rates Before you decide to raise the rent , research similar properties in your area to understand current rent prices . If you're significantly below market value, a reasonable increase is often accepted — especially by tenants who like where they live. Even if you're close to market rate, a small adjustment can still make sense if you’re offering added value like upgraded amenities, responsive maintenance, or flexible lease terms. 2. Time It Around Lease Renewals The best time to increase the rental rate is when a tenant is renewing the lease . This gives them the chance to consider the new rate and evaluate their options — all while avoiding the hassle and cost of moving. Be sure to send a formal rent increase notice with enough lead time, typically 30 to 60 days in advance, depending on local regulations. 3. Communicate the “Why” Clearly When increasing rent, communication is everything. Let your tenants know the reasons behind the increase: Rising property taxes or insurance Increases in maintenance or utility costs Alignment with market rates Planned improvements to the unit or building Even if they don’t love the change, most tenants are more receptive when they feel respected and informed. 4. Offer Options and Flexibility If you’re working with long-term tenants you’d like to keep, consider offering choices to soften the increase: Extend the lease at the current rate for a few more months Offer a discounted rate for early renewal Split the increase over two payments instead of one lump sum This approach shows that you're not just looking to raise the rent , but to build a fair and lasting relationship. 5. Lean on Your Property Manager (If You Have One) Experienced property managers can provide insight into local rent prices , craft professional communications, and help navigate lease renewals in a way that keeps tenants happy while protecting your bottom line. They can also deliver rent increase notices and handle pushback more objectively. If you manage your property on your own, consider consulting a manager or local expert before finalizing your approach. Final Thoughts Increasing the rental rate is a normal part of owning a rental property , but it should always be done with care and intention. When you base your decisions on market research, communicate transparently, and give tenants room to respond, you’re more likely to keep good renters in place — even at a higher price point.  Want help reviewing your current lease structure or market position before you raise the rent? We’re here to support you.
By John David Sarmiento April 9, 2025
Finding the right tenant is one of the most important things you’ll do as a property owner. The right renter can mean steady income, fewer problems, and long-term stability — while the wrong one can lead to missed rent, damage, or legal headaches. So how do you actually find great tenants for your rental property? Here's a clear, step-by-step approach that works — whether you're a new landlord or a seasoned investor. 1. Write a Clear, Honest Rental Listing Start by crafting a listing that highlights what makes your property attractive, but also sets clear expectations. Good property descriptions should include: Rental price and lease length Number of bedrooms and bathrooms Location and amenities Any restrictions (pets, smoking, etc.) Post your listing on multiple rental listing sites — but don’t underestimate the power of rent signs in front of the property, especially if it's in a high-traffic area. 2. Market Where Your Ideal Tenants Are To reach more prospective tenants , take your marketing beyond listing sites. Post your property on social media , community groups, and even local forums. Word of mouth can also be powerful — let friends, colleagues, and neighbors know the unit is available. Make sure your contact information is easy to find and consistent across platforms. You want prospective renters to reach you quickly when interest is high. 3. Use a Standard Rental Application When potential tenants reach out, have a standard rental application ready to go. This not only helps you stay organized, but ensures you’re collecting all the info you’ll need for the next step — tenant screenings . A good application should request: Full name and contact details Employment and income information References and previous landlord contacts Authorization for a background check and credit score pull 4. Screen Tenants Thoroughly (and Legally) One of the most critical steps in finding good tenants is how you screen tenants . Don’t skip this part — it’s where most rental issues can be avoided. Effective tenant screenings usually include: Background check (criminal history, eviction records) Credit score and payment history Verification of employment and income Reference checks with their previous landlord Always follow housing laws when screening applicants. Be consistent, fair, and avoid any language or decisions that could be considered discriminatory under the Fair Housing Act. 5. Collect a Security Deposit and Finalize the Lease Once you’ve found a great tenant , collect a security deposit (within the limits set by your state), and have both parties sign a clear, legally binding lease agreement . Your lease should detail rent amounts, due dates, responsibilities, and procedures for repairs or disputes. If you're not sure how to draft one, consult with a landlord or property manager familiar with local rental laws. Final Thoughts Finding the right tenant takes more than just putting up a listing — it takes a clear strategy, legal awareness, and the ability to evaluate prospective tenants fairly and confidently. The effort you put in now saves time, money, and stress later.  If you're unsure or simply want to ensure a smooth process, working with a professional property management company can make tenant placement and lease compliance much easier.
More Posts

Property Management Made Easy


Los Angeles

1411 W. 190th St.,
Suite 225

Los Angeles, CA 90248

Temecula

41743 Enterprise Circle N.,
Suite 207

Temecula, CA 92590