# Common Ration Utility Billing (RUBs) Calculations

“RUBS” Is an Acronym for Ratio Utility Billing Systems.  The Vitality Billing Center uses RUBs as a billing method.  These calculations can be a number of the three options below.

## Option 1: 50/50 Split

With the RUBs 50/50 Split allocation, 50% of the utility bill back is based on occupant count, 50% based on unit square footage.

The allocated portion of a property’s utility expenses (the amount passed back to residents) is typically reduced by some percentage to account for common are usage. This cost is absorbed by the property, thus reducing the amount of the bill allocated to the individual residents.  This is usually referred to as a Common Area Deduction (CAD) or even a Common Area Maintenance fee (CAD).

The allocated expense is then divided into two halves.  One half is to be used for calculating the square footage of the equation and one for calculating the occupant part of the equation.

#### Calculating the square footage part of equation:

Let’s assume you have a property that totals 100,000 occupied, rentable square feet.  You have a unit (Unit A) that is 750 square feet. Vitality will calculate the square footage percentage by taking the rentable square foot of the unit and dividing it by the rentable square footage of the property.  (750 / 100,00 = .0075)

The total cost available to allocate to residents for square footage is \$900 for water and \$1,350 for sewer (\$1,800 / 2 = \$900) (\$2,700 / 2 = \$1,350)

This percentage is then used to calculate the square footage amount.  For Example:

#### Calculating the occupancy part of equation:

The occupancy part of the equation is based on the number of residents occupying a unit as a percentage of the total occupancy on the property, with less weight given to each occupant beyond the first.  This results in an Occupant Usage Factor and used in each individual unit calculation.

In our example above, let’s say that Unit A has 3 residents.  This would equate to an occupant factor of 2.2.  For purposes of this example, let’s assume that all of the other units add up to an occupant factor of 550.

The total cost available to allocate to residents for occupancy is \$900 for water and \$1,350 for sewer (\$1,800 / 2 = \$900) (\$2,700 / 2 = \$1,350)

You then divide the occupant factor for the unit by the total occupant factor for the property to arrive at a percentage (2.2 / 550 = 0.004).

We then take this percentage and apply it to the property’s utility bills used for bill back.

The last part of the equation is adding the Occupancy amount to the Square Footage Amount.

This would bring your total utility bill to \$25.88

## Option 2:  Square Foot

Calculating based on square footage is calculated by taking the total occupied square footage of a unit and dividing it by the total rentable square footage of the property.

The allocated portion of a property’s utility expenses (the amount passed back to residents) is typically reduced by some percentage to account for common are usage. This cost is absorbed by the property, thus reducing the amount of the bill allocated to the individual residents.  This is usually referred to as a Common Area Deduction (CAD) or even a Common Area Maintenance fee (CAD).

#### Calculating square footage:

Let’s assume you have a property that totals 100,000 occupied, rentable square feet.  You have a unit (Unit A) that is 750 square feet. Vitality will calculate the square footage percentage by taking the rentable square foot of the unit and dividing it by the rentable square footage of the property.  (750 / 100,00 = .0075).  It then takes this percentage and applies it to the Allocated Expense for each utility.

This would bring your total utility bill to \$33.75

## Option 3:  Occupancy

Calculating based on occupancy is calculated by taking the total occupancy of a unit and dividing it by the total occupancy of the building.

The allocated portion of a property’s utility expenses (the amount passed back to residents) is typically reduced by some percentage to account for common are usage. This cost is absorbed by the property, thus reducing the amount of the bill allocated to the individual residents.  This is usually referred to as a Common Area Deduction (CAD) or even a Common Area Maintenance fee (CAD).

#### Calculating Occupancy:

Occupancy is based on the number of residents occupying a unit as a percentage of the total occupancy on the property, with less weight given to each occupant beyond the first.  This results in an Occupant Usage Factor and is used in each individual unit calculation.

In our example above, let’s say that Unit A has 3 residents.  This would equate to an occupant factor of 2.2.  For purposes of this example, let’s assume that all of the other units add up to an occupant factor of 550.

You then divide the occupant factor for the unit by the total occupant factor for the property to arrive at a percentage (2.2 / 550 = 0.004).

This would bring your total utility bill to \$18.00