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Property management glossary
Money & accounting

Shared utilities allocation

Also called: utility split, utility allocation, ratio utility billing, RUBS

Plain-English definition

The disclosed method used to divide one utility bill for a shared property among the residents who live there.

What shared utilities allocation means in practice

Common methods include a flat amount included in rent, an equal split of the actual bill, a split by occupied rooms or occupants, and a submetered usage charge. Some jurisdictions regulate how utility costs may be rebilled and what has to be disclosed, so the method belongs in the lease before the first bill arrives, and the source bill should be retained beside each resident’s share.

Example

A $240 electric bill for a four-bedroom house is split equally at $60 per resident, with the utility statement stored beside each resident’s charge.

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This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.