RUBS Utility Billing: A Guide for Montana Renters

If you’re renting an apartment or home in Montana, you may encounter a method called Ratio Utility Billing System (RUBS) used for splitting utility costs. Understanding how RUBS works and your rights under Montana law can help you handle billing issues and communicate confidently with your landlord.

What Is RUBS Utility Billing?

The Ratio Utility Billing System (RUBS) is a method landlords use to divide the total utility costs among multiple tenants when units do not have separate utility meters. Instead, charges are allocated based on factors like unit size, number of occupants, or similar formulas.

How Do Landlords Calculate RUBS?

• Unit square footage: Charges based on the size of each rental unit.
• Number of occupants: Charges divided by the number of residents in each unit.
• Bedrooms or bathrooms: Uses number of rooms as allocation basis.

These calculations attempt to fairly spread utility costs but may vary from property to property. It’s important that the RUBS method used is clearly described in your lease agreement.

Your Rights as a Montana Renter

Montana’s main landlord-tenant law, the Montana Residential Landlord and Tenant Act, protects renters from unfair billing practices. While it does not specifically address RUBS, it outlines landlord obligations for “essential services” like water, heat, and electricity[1].

• Your lease must state if you’re responsible for utilities and, if RUBS is used, explain the method.
• Landlords cannot charge renters more than the actual cost of utilities supplied to the property.
• Unexplained or unclear charges can be disputed.
• If an essential utility is shut off due to the landlord’s action or inaction, you may have legal remedies.

What to Do If You Have a RUBS Billing Problem

If you believe you’ve been unfairly charged under RUBS, take the following steps:

• Review your lease for utility terms and RUBS details.
• Request clear written documentation of the billing formula from your landlord or property manager.
• Keep all bills, statements, and written communications.
• If there’s no resolution, Montana law allows you to submit a written complaint or notice to your landlord.

Official Forms and How to Use Them

Montana does not have a specific official form for utility billing disputes. However, you can use the “30 Day Notice to Landlord - Violation of Rental Agreement or Law” to formally notify your landlord of any issue, such as incorrect or unclear utility billing.

• Form: 30 Day Notice to Landlord - Violation of Rental Agreement or Law
• When & How Used: Use this form to notify your landlord if you believe they’ve violated the lease or Montana’s landlord-tenant laws regarding utility charges. For example, if the RUBS calculation isn’t included in your lease or seems incorrect, complete the form, specify your concern, and deliver it to the landlord in person or by certified mail.
• Download Montana Rental Forms (Official Court Link)

Where Can Renters Resolve Disputes?

In Montana, rental disputes, including those related to utility billing, are typically handled through the local Justice Court and, in some cities, the Municipal Court. These courts oversee tenant-landlord disputes and eviction cases.

Relevant Montana Law

• Montana Residential Landlord and Tenant Act (Title 70, Chapter 24, Montana Code Annotated)

1. Can my landlord use RUBS if it’s not in my Montana lease?
   

   No, landlords should not use RUBS billing unless the method and your responsibility for utilities are clearly spelled out in your signed lease or rental agreement.

2. What should I do if I get an unclear utility bill?
   

   Request a detailed written explanation from your landlord. If the issue is not resolved, you can use the “30 Day Notice to Landlord” form to address the problem formally.

3. Can I withhold rent if my utilities are disconnected?
   

   Under Montana law, tenants may have rights if essential services are cut off due to the landlord’s inaction, but you should follow the legal process and consider seeking advice from Justice Court or legal aid before doing so.

4. Is RUBS legal in Montana?
   

   RUBS is not prohibited but must be transparently detailed in your lease and comply with the Montana Residential Landlord and Tenant Act.

5. Who do I contact for help with a utility billing dispute?
   

   You can contact your local Justice Court or a state legal aid office for guidance on next steps or filing a formal complaint.

Conclusion: Key Takeaways for Montana Renters

• Always review your lease for clear RUBS or utility billing terms.
• Landlords must be transparent and cannot overcharge for utilities.
• If you have a billing dispute, use Montana’s official notice forms and consider reaching out to Justice Court.

Understanding your rights and options helps you address utility billing issues confidently and ensures fair treatment.

Need Help? Resources for Renters

• Montana Justice Courts – Tenant-Landlord Dispute Information
• Montana Official Landlord-Tenant Forms
• Montana Legal Services Association – Free Legal Help
• Montana Residential Landlord and Tenant Act – Legislation
• Montana Department of Commerce – Renter Protections

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1. See Montana Residential Landlord and Tenant Act, Title 70, Chapter 24, Parts 303-304 (Landlord Duties, Essential Services)

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