Colorado-Real-Estate-Journal_453177

Page 16 — Property Management Quarterly — April 2025 www.crej.com UTILITIES W ater management in multifamily homes and mobile home communi- ties presents a unique set of challenges. Many of these properties, particularly those built before the early 2000s, lack individual water meters, forc- ing property managers to rely on a ratio utility billing system. This system splits water costs among residents based on factors like unit size or the number of occupants. While RUBS was intended to pro- mote fairness and conservation, its shortcomings often outweigh its benefits. The limitations of RUBS include: n Social equity concerns. RUBS disproportionately impacts resi- dents, particularly in older MFH and MHC properties often hous- ing lower-income families. With- out control over their individual water usage, residents can face unexpectedly high bills driven by propertywide consumption or rate increases, leading to financial strain and even displacement. n Minimal impact on conservation. Despite claims that RUBS pro- motes water con- servation, studies show otherwise. Costs are shared among all resi- dents, making the marginal cost of additional water use negligible. Consequently, RUBS fails to incentivize meaningful reductions in water consumption. The Environmental Protection Agency itself has acknowledged that RUBS does not effectively encourage conservation. n Maintenance challenges. With a single master meter, property man- agers lack visibility into individual or shared water usage. Undetected leaks – both in units and common areas – can drive up water con- sumption by as much as 40%. RUBS provides no mechanism for iden- tifying or addressing these issues, leading to significant waste and higher costs. n Regulatory and administrative burdens. Increasing regulation and consumer complaints about RUBS have led some jurisdictions to ban or heavily regulate its use. Additionally, administrative fees and complex billing formulas have drawn criticism for being opaque and unfair. For landlords, navigat- ing local rent control rules and RUBS regulations adds another layer of complexity and risk. n Tenant dissatisfaction. Rising water bills, coupled with the lack of transparency in RUBS, can lead to tenant frustration and com- plaints. High utility costs deter prospective renters and can result in lower occupancy rates, reduc- ing profitability and property value over time. A smarter alternative: Water intelligence Given the limitations of RUBS, it’s clear that a more effective and equitable solution is needed. Water intelligence – leveraging advanced monitoring and smart metering technology – offers a transforma- tive approach to utility billing and water management in MFH and MHC properties. This isn’t just about billing; it’s about empower- ing property managers and resi- dents alike with actionable insights and control over water usage. Stop settling for RUBS: Employ water intelligence Nick Bettis Vice president of marketing, Metron Please see Bettis, Page 21