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RUBS Billing Method for Apartments in Chicago, Illinois

Last reviewed by NES Editorial · September 2026

RUBS (Ratio Utility Billing System) divides a property's master utility bill among residents by a fair formula. Here is how it works in Chicago and what the rules require.

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RUBS stands for Ratio Utility Billing System, a formula that divides a property’s master utility bill among residents. NES sets up RUBS for apartment communities, condominiums, and mobile home parks across Chicago and the Chicago area, and where RUBS is not the right fit we install submetering instead, all handled in-house since 1968.

Yes. RUBS billing is allowed in Chicago, Illinois.

Residents get the written formula, the total cannot exceed the utility bill, and NES handles it for you.

How RUBS works
  • Fair allocation formula

    RUBS divides the property's master utility bill among units by occupancy, square footage, or a blend that fits the property.

  • No submeters required

    RUBS works in older buildings where meters cannot be added, so it is fast and low cost to start.

  • Capped at the master bill

    Residents are billed only for their share, never more than the property's actual utility cost, and the bill is itemized.

Rules & compliance

Is RUBS billing allowed in Chicago?

Governing rule: 765 ILCS 735 & 740 (utility allocation disclosure) · Illinois Commerce Commission

Illinois RUBS rules

  • RUBS is allowed in Illinois for water and electric, with residents billed by a written allocation formula
  • Under the Tenant Utility Payment Disclosure Act (765 ILCS 740), the owner must give residents the formula and the total billed cannot exceed the utility's charge
  • Any administrative fees must be disclosed in the lease, and gas submetering is not allowed in Illinois
  • Owners must give at least 30 days notice before switching residents to tenant-paid utilities (765 ILCS 735/1.2)
  • For exact, per-unit water billing, submetering is the alternative

RUBS in Chicago

  • RUBS billing is allowed in Chicago for water and electric, with a written allocation formula disclosed before the lease
  • Illinois law caps the total at the utility's actual charge and lets residents request a copy of the master bill (765 ILCS 740), and Chicago requires tenant-paid heating costs to be disclosed in writing before the lease (Municipal Code Chapter 5-16)
  • Any administrative fees must be disclosed in the lease, and gas submetering is not allowed in Illinois
  • Water is provided by the City of Chicago Department of Water Management
  • For exact, per-unit water billing, submetering is the alternative, and NES installs and bills either way

Official sources: Illinois Commerce Commission · 765 ILCS 735 (Rental Property Utility Service Act) · 765 ILCS 740 (Tenant Utility Payment Disclosure Act) · Chicago Heating Cost Disclosure Rules (Municipal Code Ch. 5-16)

General information only, not legal advice; NES assumes no liability for reliance. Confirm current rules with the Illinois Commerce Commission or a qualified attorney.

RUBS vs submetering: which fits Chicago?

RUBS estimates each unit's share with a formula. Submetering measures each unit's actual use with a meter. RUBS is faster and lower cost to start and works where meters cannot be added; submetering is more precise and is required in some places. NES does both and will recommend the one that fits your property and the local rules.

Compare submetering

Submetering in nearby Illinois cities

NES installs and runs submetering across Illinois. See the rules and results for other communities we serve.

Common questions

RUBS billing in Chicago

RUBS stands for Ratio Utility Billing System. It divides a property's master utility bill among residents using a fair formula, usually based on the number of occupants, the unit's square footage, or a blend of both. No submeters are required, which makes it a fast, low-cost way to stop absorbing utility costs. NES sets up the formula, sends resident bills, and supports residents in-house.

See what your Chicago property can recover.

Send us your master-meter bills and unit count. We’ll model RUBS or submetering on your actual property and reply within one business day with a clear, no-obligation estimate.

  • No-obligation custom proposal
  • Compliance check included
  • RUBS or submetering, your choice
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