Texas RUBS Rules for Apartments
Last reviewed by NES Editorial · September 2026
Texas allows RUBS for water and sewer under PUCT rules: register first, disclose the formula and last year's average bills in the lease, and bill at cost.
- Typical utility savings
- 15-30%Typical utility savings
- Equipment to install
- $0Equipment to install
- When recovery starts
- 1st cycleWhen recovery starts
- States served
- 43+States served
Is RUBS legal in Texas?
Yes, for water and wastewater. Texas calls it nonsubmetered or allocated billing, and the Public Utility Commission of Texas regulates it under Texas Water Code 13.5031 and 16 TAC Chapter 24, Subchapter I. An owner registers with the PUCT before the first bill, puts the allocation formula and the property's average monthly bills from the prior year in the lease, and bills residents no more than the actual master-metered cost. Late fees are capped at 5 percent, and a change to the formula takes 90 days' written notice.
What Texas requires before you send the first RUBS bill
- Register the property with the PUCT on its form (16 TAC 24.275), and update the registration when the billing method or ownership changes
- Put a plain description of the allocation method in the lease, plus the property's average monthly water and wastewater bills from the prior calendar year (Texas Water Code 13.5031)
- Bring the units up to the low-flow fixture standard and complete a leak audit of every unit and common area before billing starts (Texas Water Code 13.506)
- If rent went up in the 90 days before billing started and the increase was tied to utilities, roll it back (Texas Water Code 13.505)
What each bill can and cannot include
- Residents as a group cannot be billed more than the property's actual master-metered water and wastewater cost
- Late fees are capped at 5 percent of the bill
- Common-area usage such as pools, irrigation, and laundry has to come out before the split
- The formula can use occupancy, square footage, or a mix, and changing it takes 90 days' written notice to residents
- Records of consumption, utility charges, and each resident's allocation must be kept and open to inspection
RUBS or submeters in Texas
Texas lets owners choose. Submetering bills each unit for measured use and carries a 9 percent service charge cap on the submetering cost; allocation carries no equipment cost and starts on the next billing cycle. Older garden communities with shared risers usually land on RUBS, and newer buildings with accessible plumbing usually meter. NES runs both and will tell you which one your plumbing supports before you sign anything.
Enforcement
The PUCT has exclusive jurisdiction over overcharges. A resident who was overbilled is repaid the overcharge through the Commission, and any violation of Chapter 13 or a PUCT rule can draw an administrative penalty of up to $5,000 per violation per day (Texas Water Code 13.4151). Registration, lease disclosure, and at-cost billing keep a property clear of both.
Electric and gas in Texas
The water rules above do not cover electricity or gas. Electric allocation in Texas follows the PUCT's electric rules and the serving utility's tariff, and gas follows the Railroad Commission's rules, so NES sets those up separately for your property. The Texas submetering guide covers the measured-billing side.
RUBS or submetering?
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, while submetering is more precise and is required in some places. NES does both and recommends the one that fits your property and the local rules.
Compare submetering and RUBSGeneral information only, not legal advice. RUBS rules vary by state, county, and city and change often, and some places do not allow RUBS at all. Confirm the current rules for your address with your local authority or a qualified attorney, or let the NES compliance team verify them for you.
Texas RUBS Rules for Apartments
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