RUBS water billing: is your share right?

How RUBS works

When a building has one master meter, the utility bills the landlord. With a Ratio Utility Billing System (RUBS), each tenant pays part of that master bill based on a formula the landlord picks. The National Consumer Law Center lists common variables: number of units, a unit’s square footage, bedrooms, bathrooms, and occupants. Its example: a 10-unit building with a $1,000 master water bill split equally charges each unit $100 a month.

That’s different from submetering, where each unit’s actual use is measured. With RUBS, the bill doesn’t track your own use.

SourceNational Consumer Law Center: An Introduction to Ratio Utility Billing Systems · accessed Oct 10, 2026

Where overcharges hide

NCLC describes three problems:

• Opaque formulas: tenants may not know the formula or see the master bill.
• Rate swaps: an owner may pay a lower commercial rate, then recalculate the bill at a higher residential rate. In its example, a $1,000 bill becomes $1,200 and each of 10 units pays $120.
• Billing-company fees: a third-party biller may add a fee. With a $5 monthly fee, the example reaches $125 per unit instead of $100.

NCLC also notes that state utility consumer protections, like billing-dispute rules and fee caps, don’t apply to RUBS unless a state adds protections specific to RUBS.

SourceNational Consumer Law Center: An Introduction to Ratio Utility Billing Systems · accessed Oct 10, 2026

Texas: the rules for allocated water bills

Texas regulates allocated (non-submetered) water billing in apartment houses, condominiums, and manufactured home communities. SB 873 (2017) requires Public Utility Commission rules under which:

• The lease contains a clear written description of how the allocation is calculated.
• The lease states the average monthly bill for all units for the previous calendar year.
• The owner may not charge tenants more than the actual charges imposed on the owner for the property’s utility consumption.
• The owner keeps records of consumption, utility charges, and allocations, including the utility’s bills, and makes them available for tenant inspection during normal business hours.
• A late fee on an allocated water bill may not exceed 5% of the bill paid late.

The law doesn’t limit rent, administrative fees, or other amounts unrelated to utility costs. If the commission finds an owner overcharged a complaining tenant, it must order the owner to repay the overcharge.

SourceTexas Legislature: SB 873 (85R), enrolled text · accessed Oct 10, 2026

The commission’s rule applies these protections to apartment houses (five or more units), condominiums, multiple use facilities, and manufactured home rental communities.

SourcePublic Utility Commission of Texas: 16 TAC §24.275 · accessed Oct 10, 2026

Other places have their own rules

NCLC points to a range of laws: San Jose, California bans RUBS; some states ban it for particular utilities; Minnesota, Arizona and Colorado permit it with consumer protections; and Oregon bars landlords from billing more than the utility charges them. Look up your state and city before you dispute.

SourceNational Consumer Law Center: An Introduction to Ratio Utility Billing Systems · accessed Oct 10, 2026

What to request in writing

NCLC’s checklist starts with the lease and the bills. Ask your landlord or manager, in writing, for:

• The master water and sewer bills. NCLC suggests a year or two, because bills swing with the seasons.
• The formula and the numbers used for your unit and the building.
• The name of any billing company and every fee it adds.

Then run the share checker at the top of this page with those numbers and compare it with your bill.

SourceNational Consumer Law Center: An Introduction to Ratio Utility Billing Systems · accessed Oct 10, 2026

Don’t withhold rent on your own

NCLC notes that some leases treat an unpaid RUBS bill as a breach that could lead to eviction. Pay what isn’t in dispute, dispute the rest in writing, and get local legal advice before holding back money.

Educational information, not legal advice. Your lease and your state’s law control.