Rent Control Comes to Pasadena - What Does that Mean for RUBS Utility Recovery?
This article is contributed by Daniel Sharabi, Chief Executive Officer, Livable
Real estate industry publication, The Real Deal, says that 57% of people in Pasadena rent, which means a lot of housing providers are impacted by the City’s newly passed rent control measures. How can housing providers like you protect your bottom line in the face of the new rules? Implementing a Ratio Utility Billing System, better known as “RUBS,” today is your answer.
Measure H – Pasadena’s Rent Control Ballot Measure
Measure H, also known as the Pasadena Fair and Equitable Housing Charter Amendment, was passed by local voters in November. Proponents have held that the measure is intended to help improve the health of Pasadena communities by driving equity in housing. However, practically speaking, this law limits rent increases to 75% of the Consumer Price Index, or CPI. That means that rent increases are connected to - and not allowed to exceed – increases in local costs for everyday items like food, gas, clothing, transportation and more, according to The Real Deal. Because the CPI measures average CHANGE in price increases, it shows a snapshot of changes in the economy and how those changes affect average household and consumer spending.
The U.S. Bureau of Labor Statistics says that “The Consumer Price Index increased 8.5% for the year ended March 2022, following a rise of 7.9% from February 2021 to February 2022.” Based on that number, rents in Pasadena cannot be increased by more than 6.375%. The law also prohibits housing providers from “reducing housing services” by the same percentage. That may include billing back for utilities through a Ratio Billing Solution, or “RUBS.”
Your Solution = RUBS
Ratio Utility Billing may still provide some relief to housing providers in tightly rent-controlled markets. RUBS uses data about your existing billing and properties to fairly and accurately allocate master billed utilities, including water and internet service to your tenants. Even if you cannot directly bill your residents for their utility use due to local regulations, you can still enroll your properties in Livable’s RUBS system and our Conservation Corner to generate Sample Statements for your residents. Studies by the US Environmental Protection Agency show that simply informing tenants of their utility use causes up to a 15% reduction in that consumption almost immediately. So it’s great for your bottom line and for the planet!
According to Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles:
"Livable is an amazing, simple to use platform that saves property owners money while also conserving precious resources like water. Many of our members today are using Livable’s highly rated Ratio Utility Billing System and are realizing savings on all their utility bills. I am impressed by how easily our members have deployed the Livable ‘RUBS’ platform and how quickly they have begun saving on their utility bills."
Are you ready to start saving with Livable today? Contact Livable’s experts and they will walk you through the process. Come on save with Livable! Go to https://comesave.livable.com/aagla