RUBS Utility Billing: What New Mexico Renters Need to Know

If you rent in New Mexico, you may have heard of 'RUBS utility billing.' This practice can affect your monthly expenses, especially if your landlord pays for utilities and then divides the cost among tenants. Understanding your rights and responsibilities around RUBS utility billing can help you avoid surprises and recognize when your bill is fair under state law.

What is RUBS Utility Billing?

RUBS stands for Ratio Utility Billing System. Instead of using individual meters to measure the exact usage of utilities like water, sewer, or trash for each unit, RUBS distributes the total building’s cost across tenants, often using formulas based on:

• Number of occupants per unit
• Square footage of each unit
• A fixed formula agreed upon in the lease

This billing method is common in multifamily housing where installing individual meters is impractical. If your lease includes RUBS, your landlord calculates your portion of the utility bill even if there's no separate meter for your apartment.

Is RUBS Billing Legal in New Mexico?

New Mexico law does not specifically prohibit RUBS utility billing, but it does set rules for what must be clearly disclosed in the lease. Landlords are required to be honest about utility responsibilities.

• The lease agreement should clearly state how each utility is billed.
• If your landlord uses RUBS, this method must be described in your rental agreement.
• You have the right to request an itemized statement showing how your share was calculated.

The key legislation for renters and landlords in the state is the New Mexico Uniform Owner-Resident Relations Act^[1].

Your Rights as a Renter

New Mexico renters have protections relating to utility billing, particularly around transparency and fair billing. Your landlord cannot change the billing method without proper notice and a lease amendment. Also, they must not overcharge tenants or profit from utility pass-throughs.

• Ask for a copy of past bills or summary statements if you feel your charges are inaccurate.
• Disputes should be addressed with your landlord first, and in writing whenever possible.

Disputes and Filing a Complaint

If you believe you’re being unfairly charged or your landlord is not following the rules, you have options. New Mexico does not have a specific utility billing tribunal, but you can bring cases involving rental disputes to the New Mexico Magistrate or Metropolitan Courts, which handle landlord-tenant matters including those arising under the Uniform Owner-Resident Relations Act^[2].

Relevant Forms for Renters

• Notice of Dispute or Request for Accounting:
  • Used to formally request a breakdown or dispute a utility bill.
  • No official state form, but writing and keeping a copy is recommended. Include your name, address, the charges you dispute, and your request for documentation or correction.
  • Sample template available in the Attorney General's Landlord-Tenant Handbook (see p. 28 "Sample Letter to Landlord").
• Petition by Resident (NMRA-4-902):
  • Use this form to file a claim in Magistrate or Metropolitan Court regarding any violation of the rental agreement, such as incorrect utility charges or failure to follow the RUBS billing method promised in the lease.
  • Download officially at New Mexico Courts Civil Forms.
  • Fill out and file at your local courthouse. Include clear details and attach supporting documents (e.g., disputed bills, lease agreement).

How Do I Address Issues with RUBS Billing?

Utility billing concerns should always be documented and addressed promptly. Here’s a concise guide:

• Review your lease for details about utility billing and RUBS calculations.
• Ask your landlord for an itemized explanation if needed.
• If not resolved, send a written notice referencing the required disclosures.
• If still unresolved, consider filing a formal dispute using NMRA-4-902 or seeking help through the state's attorney general or courts.

Frequently Asked Questions (FAQ)

1. Is my landlord allowed to make a profit on RUBS utility billing?
   No. Landlords in New Mexico can only collect the actual cost of utilities. They cannot add surcharges beyond their costs for the utilities provided.^[1]
2. Can my landlord change how utilities are billed before my lease ends?
   Not without your written agreement. Any change in billing practices, including RUBS, must be updated in your lease and agreed to by both parties.^[1]
3. What should I do if my RUBS bill seems unreasonably high?
   Ask for an itemized statement from your landlord. If you suspect overbilling, you can dispute the charge in writing and, if needed, file a claim with the court using the Petition by Resident (NMRA-4-902) form.
4. Who handles utility billing disputes between renters and landlords in New Mexico?
   Magistrate and Metropolitan Courts oversee rental disputes, including those involving utility billing. The New Mexico Courts system is your point of contact.
5. Where can I find more information and support on RUBS billing?
   The New Mexico Attorney General's Office offers guides and resources for renters, and your local court or legal aid office can help if you need to escalate a dispute.

Key Takeaways for New Mexico Renters

• RUBS utility billing is legal if properly disclosed and agreed in your lease.
• Always request documentation and clarification if your bill seems unclear or excessive.
• Use official forms and court resources for unresolved disputes or billing issues.

Staying informed and organized can help you avoid surprise expenses and ensure your rights are protected.

Need Help? Resources for Renters

• New Mexico Courts (Magistrate and Metropolitan Courts) – file official disputes and obtain court forms.
• New Mexico Attorney General's Office – provides educational materials and sample letters.
• New Mexico Uniform Owner-Resident Relations Act – official state legislation on landlord and renter responsibilities.
• New Mexico Legal Aid – free or low-cost legal support for renters in need.

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1. New Mexico Uniform Owner-Resident Relations Act (NMSA 1978, § 47-8-1 et seq.)
2. New Mexico Courts – Landlord/Tenant Disputes

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