December 21, 2021

Third-Party Utility Billing: Advantages of Outsourcing

By
Team Nutiliti

With landlords and property managers fed up with the DIY way, third-party utility billing is gaining traction. Is life, however, better now that you've made the switch? We'll break it down for you.
For multi-unit property owners and managers, unbilled utilities expenditures may eat into revenues. Even worse, seeking to recoup the expenditures is time-consuming and can lead to a slew of legal and logistical snags that most people are unfamiliar with.

Third-party RBC (read, bill, collect) firms, on the other hand, provide a mechanism to reduce and/or recoup these expenses without having to undertake the job yourself. However, there are a few more advantages to using third-party billing. Let's have a look at the benefits you might expect from a partner.

Saves You Time

For an in-house staff, managing utility bills is a lot of effort. There's a much to accomplish, from meter readings and data verification through invoice production and payment collection. This task consumes resources that most property managers do not have. There isn't enough time for in-house workers to care about new utility obligations.

Utility billing and collection is handled by a team of RBC employees. This implies they only do it, and they can do it better and quicker than anybody else. As a result, you get all of the time you spent on billing returned right away. And because you were probably not measuring this time, you had no idea how much it actually cost you.

Increase Cost Recovery

The purpose of implementing utility billing is to optimize cost recovery and thereby increase NOI (net operating income). Outsourcing utility bills to a third-party organization helps achieve this aim in various ways.

For starters, third-party outsourcing gives the bill greater validity, making renters more inclined to pay. Tenants know it's from a reliable third party when the firm sends out the bill. This increases trust in the bill's accuracy and impartiality.

Second, billing firms provide tenants with customer service. RBCs are able to troubleshoot difficulties that could otherwise prohibit people from paying their bills since they are knowledgeable about them.

Third, a billing business has access to many payment channels that a landlord does not. Cash, check, phone, and an internet gateway are all options. RBCs may also accept payments 24 hours a day, seven days a week. This allows tenants to pay their bills using their preferred method at any time of day. And the more payment options and flexibility you provide, the more likely you are to recoup your costs.

Solves Problems Ahead of Time

There are several options to be made while establishing utility billing, such as submetering vs. RUBS. Alternatively, what billing factors you should employ.

Utility billing businesses that work on a third-party basis can ensure that you have the necessary system in place and that it is properly installed. Technicians with hundreds of submeters installed will do a better job than an in-house team.

RUBS professionals are well-versed in the data and are trained to spot anomalies. Overbilling is avoided, which would result in legal expenses and liabilities (more on that in a bit).

Working with a seasoned group ensures that you get it correctly the first time. This prevents problems from arising in the first place, saving properties money in the long run.

Working with a third party not only prevents problems from occurring, but it also improves the bill distribution process. Utility billing isn't about slapping invoices up and stuffing them into mailboxes. Rather, the goal is to design a reasonable cost that renters would comprehend and pay.

Tenants will fight back if an in-house staff just adds utilities to the bill. Third-party utility billers help with the rollout by ensuring that residents are informed about the bill. Tenants are more likely to pay utility bills that they understand, in our experience.

Regulatory Compliance

The regulations governing utility billing are complicated. The way landlords bill utilities is governed by various rules and regulations in each state, city, and county.

RUBS billing is prohibited in several places, such as Delaware. In other places, such as Louisiana, you can bill for some but not all utilities. There are rules that must be followed when it comes to what information must be included on a bill. You're also limited in terms of how much you can charge and how much time you can provide tenants to pay. Processing fees and grace periods are controlled.

It is a major legal offense to break one of these rules. It's vital engaging with specialists who understand the rules and how they influence your property to prevent penalties and litigation. While assuring a successful rollout, the correct third-party utility billing business will keep you inside the law's bounds.


Using a third-party utility billing business as a partner is an excellent method to get started recovering utility costs. However, there are a slew of other advantages you may not have considered. If you're bored of doing things yourself, it's time to acquire some quotations.

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