Managing utilities in large multifamily properties can be challenging and costly. Partnering with specialized utility billing companies can help reduce expenses, improve efficiency, and ensure compliance with local regulations. Key benefits include:
- Individualized Billing: Residents billed for their own utility usage can reduce consumption by up to 35%.
- Error Reduction: Approximately 17% of utility bills contain errors, which these companies help identify and correct.
- Cost Recovery: Services like submetering and RUBS (Ratio Utility Billing System) can recover a significant portion of utility costs.
This article highlights five top utility billing vendors tailored for properties with 20+ units:
- Big Multifamily Vendors: Offers RUBS, submetering, and advanced analytics for nationwide properties with 100+ units.
- Synergy Utility Billing: Provides nationwide support with customized billing and consulting services for multifamily properties of all sizes.
- VITALITY Utility Billing: Focuses on automation, real-time monitoring, and EnergyStar reporting for medium to large properties.
- Banyan Utility: Serves properties with 20+ units, offering energy audits, solar financing, and smart thermostat programs.
- Canada Utility Management: Specializes in cross-border utility management for U.S. and Canadian multifamily properties.
Quick Comparison
| Company | Billing Models | Key Features | Coverage | Ideal Property Size |
|---|---|---|---|---|
| Big Multifamily Vendors | RUBS, Submetering | Analytics, integrations, resident portal | Nationwide (U.S.) | 100+ units |
| Synergy Utility Billing | Submetering, RUBS | Consulting, submeter installation | Nationwide (U.S.) | All multifamily sizes |
| VITALITY Utility Billing | Submetering, RUBS | Real-time monitoring, EnergyStar reporting | Nationwide (U.S.) | Medium to large properties |
| Banyan Utility | RUBS, Submetering | Energy audits, smart thermostats | Nationwide (U.S.) | 20+ units |
| Canada Utility Management | RUBS, Submetering | Automated processes, cross-border expertise | U.S. & Canada | Large communities |
Choosing the right vendor can optimize costs, improve cash flow, and enhance resident satisfaction. Dive into the details below for a closer look at what each company offers.
Sub-metering and RUBS for Multifamily Real Estate: How to Decrease Expenses & Increase NOI
1. Big Multifamily Vendors
Big Multifamily Vendors provides integrated utility management solutions tailored for large apartment communities. Traditional systems often rely on isolated data, which limits their ability to work seamlessly across platforms. This vendor's approach simplifies utility operations, making them more efficient and interconnected [3].
Their flagship product, the Zego Utility platform, leverages technology to modernize utility management on a large scale. It automates processes like payment handling, billing, and submetering, while also auditing utility bills to uncover potential savings and improve billing accuracy [4]. Here's a closer look at its billing models, core features, coverage, and ideal property size.
Billing Models Supported
Big Multifamily Vendors tackles cost recovery issues with flexible billing options. They support both RUBS (Ratio Utility Billing System) and direct submetering. The RUBS model allocates utility costs based on factors like square footage or the number of occupants, while submetering allows for precise billing based on actual usage in each unit. Additionally, their Move-Out Calculator simplifies turnovers by generating prorated charges and final utility statements, reducing errors during tenant transitions.
Service Features
The platform offers a range of tools to streamline utility management:
- Itemized resident billing with easy click-to-pay options.
- An automated accounts payable system that simplifies invoice receipt, auditing, and payment.
- Vacant unit cost recovery to help property managers recoup losses from unoccupied units.
- Seamless integration with leading property management software to eliminate duplicate data entry.
- Robust reporting and analytics to provide insights into utility usage, helping property managers optimize consumption across their portfolios [4].
Geographic Footprint
Big Multifamily Vendors operates globally, with a strong focus on high-growth urban markets across the United States and beyond [5]. Their broad reach ensures consistent and reliable service, no matter where a property is located.
Target Property Size
This platform is specifically designed for large multifamily communities. It’s a scalable solution that caters to property management companies overseeing thousands of units, making it an ideal choice for managing complex, multi-community portfolios.
2. Synergy Utility Billing
Synergy Utility Billing is a full-service RBC provider focused on utility management for multifamily properties. They specialize in creating customized solutions that cater to the unique needs of property managers and residents, with a clear goal of improving cost recovery and operational efficiency.
The company has built a strong reputation among large multifamily communities by offering comprehensive utility management services. From initial system design and consulting to ongoing billing operations and customer support, Synergy provides a complete solution for properties looking to simplify their utility processes. Their tailored billing models and advanced features are designed to meet the demands of large-scale communities.
Billing Models Supported
Synergy offers a variety of billing options to suit different property setups. They support submetering, which bills residents based on their actual utility usage, and RUBS (Ratio Utility Billing System), a cost-effective way to allocate utility expenses.
Additionally, they provide convergent billing - combining rent, utilities, and fees into a single statement - and vacant unit cost recovery (VUCR), which recovers more than 90% of utility costs. As they explain:
"We offer a full range of utility billing options, including convergent billing – all applicable resident charges on a single bill." [6]
Service Features
Synergy covers the entire utility management process with services designed to integrate seamlessly into existing property management systems. Their offerings include intelligent allocation, billing, collection, and remittance services. They also manage submeter installation, ongoing maintenance, and customer service.
Their platform provides 24/7 online portals for both residents and property managers, featuring integrated payment processing and utility analytics.
Customization is a key focus for Synergy, as they state:
"We pride ourselves on creating custom submetering and RUBS setups that fit the exact needs of landlords and residents alike." [7]
Customer support is handled through a responsive helpdesk that assists both landlords and residents. They also offer utility consulting services to help properties identify the best billing methods and system configurations for their specific needs.
Geographic Footprint
Synergy Utility Billing operates nationwide, with installations across the U.S. [8]
This extensive reach allows them to serve a wide range of property types, including apartment buildings, HOAs, water districts, military housing, mobile home parks, and multi-state portfolios. Their ability to handle geographically dispersed assets is particularly valuable for property management companies with diverse locations.
Target Property Size
While Synergy works with various property types, their services are especially well-suited for large multifamily communities. Their expertise in managing complex billing scenarios, handling multiple utility types, and delivering customized configurations makes them an ideal choice for properties with significant unit counts and diverse utility requirements.
Their focus on tailored solutions and dedicated support is a strong match for large-scale operations, where a one-size-fits-all approach often falls short in addressing the complexities of utility management across multiple buildings or property types.
3. VITALITY Utility Billing
VITALITY Utility Billing simplifies utility management for large multifamily properties by leveraging automation and data analytics. Headquartered in Murray, Utah, the company addresses the growing demand for efficient utility billing solutions across extensive residential portfolios.
Billing Models Supported
VITALITY supports two main billing approaches: meter billing, where tenants are charged based on actual usage, and RUBS (Ratio Utility Billing Systems), which allocates costs based on factors like square footage or occupancy. The platform offers flexibility with two billing options:
- Read Bill Collect (RBC): VITALITY handles invoicing and payment collection.
- Bill Only (RBO): The platform manages invoicing, while payment collection is done externally.
As the company explains:
"Whether you're billing based on actual meter readings or allocating costs using RUBS formulas based on occupancy or square footage, VITALITY streamlines the process." [9]
Service Features
VITALITY automates utility billing and transforms raw data into actionable insights through a user-friendly dashboard. Key features include:
- Consumption tracking and historical spend analysis
- Custom reporting for tailored insights
- Move-out processing to simplify tenant transitions
- Convergent billing that combines utility and ancillary charges into one invoice
The platform integrates seamlessly with property management systems and connects with EnergyStar for benchmarking and ESG reporting. Residents benefit from a tenant portal where they can view statements, monitor usage, and make online payments.
Specialized features further enhance the platform's utility, including student billing, vacant unit cost recovery, leak detection, device certification, and demand response capabilities. These tools cater to the unique needs of multifamily properties.
VITALITY has earned positive feedback from users, with an overall rating of 4.2 out of 5 on GetApp. Its features, in particular, score an impressive 4.4 out of 5 [10].
Geographic Footprint
Operating from its headquarters at 5250 Commerce Dr, Suite 302, Murray, UT 84107, VITALITY serves properties nationwide with its software solutions.
Target Property Size
VITALITY is designed to handle the complexities of large multifamily communities. Its advanced analytics, bulk billing capabilities, and seamless integrations make it an ideal choice for managing both metered and RUBS billing. The platform’s specialized features further enhance its ability to support large-scale operations, cementing its role as a key player in utility billing for expansive residential portfolios.
4. Banyan Utility
Banyan Utility, originally established as Multifamily Utility Company in 2007, has earned a spot on the Inc. 5000 list six times. The company focuses on helping property owners recover costs and conserve resources while cutting down on operating expenses [15] [11].
Billing Models Supported
Banyan Utility supports several billing models, including code-compliant submetering, which bills residents based on their actual utility consumption. Additionally, they offer customized Ratio Utility Billing Systems (RUBS), which calculate charges using factors like square footage or occupancy. Their services cover the entire process, from design and installation to monthly readings, billing, and ongoing support [12]. Submetering, in particular, has been shown to encourage conservation [11].
In October 2024, Banyan introduced two platforms tailored for student housing properties: Student Max and Student Lite. With Student Max, Banyan directly collects payments from residents using stored payment methods. Meanwhile, Student Lite gives properties control over collections by pushing charges directly to resident ledgers [13].
These flexible billing options integrate seamlessly with Banyan's suite of services.
Service Features
Banyan Utility provides a wide range of services, including submetering installation, RUBS implementation, collections, convergent billing, energy audits, procurement, benchmarking, and tariff analysis [11]. The company also offers specialized programs like smart thermostat initiatives, solar financing, utility invoice audits, and vacant cost recovery services. Their web-based billing system ensures 24/7 access for both residents and property managers, supports online payments, and integrates with property management software to streamline operations and reduce administrative tasks [12] [14].
Maliece Sorrows, Vice President of Operations at Banyan, highlights the value of their services:
"Tracking energy and water consumption enables clients to identify buildings that are under-performing and make smart decisions for efficiency improvements." [13]
Geographic Footprint
Banyan Utility operates throughout the United States and Canada, providing utility management services in a variety of regulatory landscapes [15].
Target Property Size
Banyan Utility primarily serves properties with 20 or more units, making it an excellent choice for larger multifamily communities. Their client base spans a wide range of property types, including traditional multifamily developments, student housing, new construction projects, manufactured housing communities, single-family build-to-rent portfolios, condominiums, commercial properties, and marinas [11].
One property owner from San Diego, CA, shared their experience:
"Banyan has done an excellent job with our properties. They are very professional and have seamlessly transitioned many of our apartment buildings to the Ratio Utility Billing program, as well as setting up online automated meter reading and billing with our newer properties. I would recommend them to small and large property owners alike." [11]
To ensure the best fit for each property, Banyan provides tailored recommendations, helping owners decide between submetering and RUBS based on their property's unique needs and local regulations [12].
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5. Canada Utility Management
Canada Utility Management takes a cross-border approach to utility billing, tapping into the strong energy connections between Canada and the U.S. The company focuses on helping multifamily property owners recover utility costs through dependable billing systems and a range of management services.
Billing Models Supported
With its expertise in cross-border operations, Canada Utility Management offers flexible billing options. They support both RUBS (Ratio Utility Billing System) and submetering. RUBS services are available where regulations allow, while submetering covers electricity, gas, and water. Additionally, they provide tailored programs for managing water, electricity, gas, and sewer bills, giving property managers the flexibility to choose the best fit for their needs [16][17].
Service Features
Canada Utility Management provides a variety of services aimed at simplifying utility operations. Their vacant cost recovery service ensures that utility expenses are transferred to residents, preventing unnecessary charges for empty units. Automated invoice processing ensures timely payment of master utility bills, while utility benchmarking allows property managers to compare their property's usage with similar properties. Other features include convergent billing, which consolidates all utility charges into a single bill, and automated meter reading to minimize manual errors. The company also integrates seamlessly with most property management software platforms [16][17].
Geographic Footprint
The company operates throughout Canada and the United States, leveraging the interconnected North American energy market. With Canada supplying over 90% of key utility imports, Canada Utility Management is well-positioned to serve border regions such as New York, New England, the Midwest, and the West Coast [18][19]. This broad reach enables them to support large, diverse communities effectively.
Target Property Size
Canada Utility Management’s services are ideal for large multifamily communities that require advanced utility management solutions. Their cross-border expertise and integrated billing approach make them especially effective for properties needing comprehensive cost recovery programs and ongoing administrative support. With experience in both RUBS and submetering, the company can recommend cost-effective solutions tailored to the unique needs of each property.
Company Comparison Table
When selecting a utility billing provider for your large multifamily community, it’s essential to compare key factors like billing models, service features, geographic reach, and the ideal property size they serve. The table below provides a side-by-side overview of leading companies in this space.
| Company | Billing Models Supported | Key Service Features | Geographic Coverage | Target Property Size |
|---|---|---|---|---|
| Big Multifamily Vendors | RUBS, Submetering, Convergent Billing | Automated billing, Property management integrations, Resident portal, Analytics dashboard | Nationwide (United States) | Large multifamily communities (100+ units) |
| Synergy Utility Billing | Submetering, RUBS Billing, Utility Billing & Collection | Utility submetering, Submeter installation, Utility analytics, Consulting & system design | Nationwide (United States) | Multifamily properties of all sizes |
| VITALITY Utility Billing | Submetering, RUBS | Automated utility bill data, EnergyStar reporting, Resident portal, Real-time monitoring, Energy usage analytics, Professional meter installation [20] | Nationwide (United States) | Medium to large multifamily communities |
| Banyan Utility | RUBS, Submetering, Convergent Billing | Collections programs, Energy audits, Energy procurement, Utility benchmarking, Vacant cost recovery, Smart thermostats, Solar financing [11] | Nationwide (United States) | Properties with 20+ units |
| Canada Utility Management | RUBS, Submetering, Tailored Programs | Vacant cost recovery, Automated invoice processing, Utility benchmarking, Convergent billing, Automated meter reading | Canada and United States (focus on border regions) | Large multifamily communities requiring comprehensive solutions |
While the table offers a quick snapshot, let’s dive deeper into what sets these companies apart.
Key Observations
-
Billing Model Flexibility
All providers support multiple billing models, including RUBS (Ratio Utility Billing System) and submetering. This flexibility allows property managers to choose the most cost-effective solution for their communities. -
Service Features and Specializations
- Banyan Utility stands out with offerings like energy procurement, solar financing, and smart thermostats, expanding beyond standard billing services.
- VITALITY Utility Billing emphasizes real-time monitoring, analytics, and EnergyStar reporting, making it a strong choice for communities focused on energy performance.
- Canada Utility Management leverages automated processes and cross-border capabilities, catering to properties in U.S.–Canada border regions.
-
Property Size Focus
While most providers cater to large multifamily communities, Banyan Utility also serves smaller properties with as few as 20 units. This makes it a versatile option for a broader range of property sizes. -
Cost Recovery and Savings
Utility billing services consistently deliver measurable cost recovery. For example, one 169-unit property in Indianapolis recovered 70% of its gas costs, saving approximately $59,500 annually. Another 285-unit property achieved monthly water savings of $6,000 through submetering, increasing its overall value by about $800,000 [11]. -
Integration and Efficiency
- VITALITY Utility Billing and Big Multifamily Vendors integrate seamlessly with property management systems, simplifying administrative workflows.
- Canada Utility Management focuses on comprehensive utility management, streamlining tasks like invoice processing and benchmarking.
Why This Matters
Choosing the right utility billing provider isn’t just about simplifying billing processes - it’s also about improving energy efficiency and reducing costs. Submetering, for example, has been shown to cut energy consumption by an average of 17% [11]. This means the decision often comes down to finding a provider that aligns with your property’s unique needs and location.
Ultimately, these services not only help recover costs but also enhance operational efficiency, making them an essential tool for large multifamily communities looking to optimize their resources.
Conclusion
Selecting the right utility billing vendor can greatly improve operational efficiency while enhancing resident satisfaction in large multifamily communities. This decision isn’t just about managing utilities - it’s about protecting your bottom line and streamlining daily operations.
Utilities are a major expense, ranking as the third largest cost for multifamily properties [1]. Mismanagement can lead to significant losses, such as one case where underbilling resulted in nearly $500,000 in lost revenue over three years [23].
"By outsourcing multifamily utility billing, property managers see several advantages including offloading a labor-intensive task, to receiving more on-time and complete resident payments." - Gozego.com [1]
Beyond cost recovery, resident billing offers additional benefits. Studies show it can reduce consumption by 15%–40% [21], whereas owner-paid utilities tend to increase median energy use by 26% [1]. These savings not only benefit the property but also promote more responsible energy usage among residents.
Accuracy and customer service are essential when choosing a billing partner. Reliable systems ensure steady cash flow and smooth operations. On the flip side, poor practices can be costly - one company faced a $50,000 fine for overbilling tenants at a 367-unit property [23].
A dependable utility billing partner provides more than just cost recovery. They bring billing flexibility, advanced analytics, and seamless integration with your existing systems. These features safeguard revenue, optimize energy use, and simplify operations.
"Utility billing is about taking the variability out of utility cost, shoring up your multifamily property investments. Working with a utility billing partner can make that goal a reality." - Synergy [2]
It’s worth noting that 3–5% of all apartment units face unpaid utility bills [22]. This highlights the need for a vendor who ensures transparent, timely billing and supports your financial goals. With the right partner, you gain a strategic ally who helps optimize your property’s financial performance while improving the resident experience.
Ultimately, your choice of utility billing vendor will influence your property’s efficiency, profitability, and resident satisfaction for years to come. Take the time to evaluate your options carefully, ensuring they align with the specific needs of your multifamily community.
FAQs
What are the differences between submetering and RUBS for utility billing in multifamily properties?
Submetering vs. RUBS: Understanding Utility Billing Methods
When it comes to utility billing in multifamily properties, two methods often come into play: submetering and RUBS (Ratio Utility Billing System). While both serve the same purpose, they approach the task quite differently in terms of accuracy and cost.
Submetering involves measuring the actual utility usage for each unit. This means tenants are billed based on their exact consumption, making it a fair and accurate system. By linking costs directly to usage, submetering encourages residents to be mindful of their resource consumption, which can result in lower utility expenses for both tenants and property owners over time. Though the initial costs for equipment and installation can be higher, the long-term savings and efficiency often make it a worthwhile investment, particularly for larger properties.
RUBS, in contrast, uses a formula to divide utility costs among tenants. This formula might consider factors like the size of the unit, the number of occupants, or other variables. While RUBS is cheaper to set up - since it doesn’t require installing physical meters - it’s not as precise. This lack of accuracy can sometimes lead to disputes among tenants about the fairness of the charges. However, for properties where installing submeters isn’t practical, RUBS can still offer a workable solution.
In short, submetering is ideal for property owners aiming for precision and resource conservation, while RUBS provides a more straightforward, cost-effective option for certain scenarios.
What should property managers look for when selecting a utility billing company for large apartment communities?
When choosing a utility billing company for large apartment communities, property managers should focus on accuracy in billing, compliance with regulations, and flexible billing options. It's important to partner with a provider that has experience handling large property portfolios and can tailor their services to fit the specific needs of your community.
You’ll also want to evaluate factors like the company's ability to integrate with property management systems, their coverage area, and whether they offer real-time reporting tools. Reliable customer support and a strong history of managing collections effectively are equally crucial for smooth utility management - benefiting both managers and residents alike.
How do utility billing companies help multifamily properties stay compliant with local regulations?
Utility billing companies are essential for multifamily properties when it comes to navigating and adhering to local regulations. These companies keep up with ever-changing federal, state, and municipal laws, integrating that knowledge into their billing systems to ensure everything stays accurate and compliant.
Most of these companies rely on advanced software designed to automatically adjust as regulations evolve. This software also provides detailed reporting, helping properties meet legal requirements with ease. By taking a proactive approach to compliance, utility billing companies help property owners steer clear of fines and legal troubles, ensuring operations run smoothly.
