Managing a utility billing system is a major undertaking for multifamily property owners. That’s why many choose to work with a Read, Bill, Collect firm – or “RBC” for short. In this post, we unpack what an RBC is, the services they offer and why multifamily property owners should work with one.
What is an RBC?
An RBC is another name for a third-party or outsourced utility billing company. It’s shorthand for Read, Bill, Collect – the three main services utility billing companies offer. Here’s a more detailed look at what those tasks involve.
- Read: The first main function is to read utility meters for common utilities like water, gas and electricity. RBCs will either do this manually or with an automatic meter reading (AMR) device.
- Bill: Once the RBC has the meter readings, they will generate bills for each tenant to reflect the amount of utility consumption in a specified billing period (e.g. monthly or yearly).
- Collect: Lastly, an RBC is responsible for collecting payments from tenants based on those generated utility bills through payment methods like online payments, checks and credit cards.
RBCs typically offer these services to multifamily and mixed-use property owners and managers with the goal of handling the entire utility billing process. While those functions are certainly valuable for many property owners, there are more tasks that more full-service RBCs can offer.
Value-Add RBC Services
There are utility–billing/”>utility billing companies that can go beyond the three letters to offer even more support around utility billing. These services can include but are not limited to:
- utility-submetering/”>Submetering Services: Some utility billing companies can handle the entire lifecycle of a submetering system beyond the normal read, bill and collect functions. This includes system design, installation and optimization to ensure your system is recovering as much cost as possible.
- billing/”>Ratio utility billing System (RUBS) Services: When submeters aren’t an option, utility billing companies can use a RUBS method. This uses an industry-accepted formula to bill residents for utility services that considers multiple factors like size, layout, occupancy and more. Some utility billing companies can help you get started and maintain your RUBS program so you can recover costs even when submetering is not feasible.
- utility-analytics/”>utility Analytics: Not every RBC offers performance analysis and optimizations. Most only stick to the main read, bill and collect functions. If you can find a utility billing company that can grant you access to your utility data with actionable insights for improvement, it can mean thousands of dollars saved every month.
3 Reasons Why You Should Use an RBC
Unrecovered utility costs can wreak havoc on NOI. On top of that, attempting to recover those costs through utility billing can lead to pitfalls most don’t know how to navigate. Working with the right utility billing firm can help you avoid these pitfalls while maximizing your cost recovery. Here are the benefits of outsourcing utility billing to the right RBC.
Reason #1: The right RBC can improve your utility cost recovery rate.
The goal of any utility billing program is to maximize cost recovery. By maximizing cost recovery, you’re able to increase your net operating income each month, which improves your profitability and property values.
But none of that happens if your RBC doesn’t increase your utility rates. Simply reading a meter and generating a bill may not be enough to recover more costs. The right RBC should go a little further, asking, “What is the best way I can ensure these bills get paid on time, every time?”
That usually involves being proactive and following utility–billing-experience/”>best billing practices like:
- Ensuring all bills are accurate and defensible before sending them out.
- Sending out bills at a consistent and predictable cadence, allowing tenants to budget properly.
- Offering customer service and support services through a variety of channels.
- Accepting a variety of payment methods to make it easy and convenient for tenants to pay their utility bills.
Reason #2: The right RBC can take utility billing tasks off your plate completely.
You and your property management team are already busy conducting showings, processing rent payments, monitoring financials, screening tenants and managing work request. Adding utility billing to the list is likely not feasible, especially if you want it done correctly.
If you’re already trying to utility–billing-in-house/” target=”_blank” rel=”noopener”>manage utility billing in-house, outsourcing to the right partner can help you streamline your utility billing process while giving your team time back in their day to focus on critical tasks and core competencies.
Reason #3: Working with an RBC can help you stay in compliance.
utility billing is complex on its own. Now, add in the fact that many state and local governments have their own rules and regulations around utility billing. If you own or manage properties across the nation, what works for one property may not work for another.
The right utility billing firm will stay updated on local regulations and utility laws. This helps you avoid legal issues related to non-compliance, reducing the risk of costly mistakes and protecting you from potential disputes or fines.
Conclusion: Not All RBCs are Created Equal
Partnering with an RBC is a wise choice for many multifamily property owners, but you need to make sure you’re partnering with the right RBC. There are many providers out there that can read meters, generate bill and collect payments. There are fewer that can provide valuable and actionable advice for property owners to lower their utility costs and improve their NOI.
A firm like Synergy utility billing can not only read, bill and collect, our team can help you get the most out of your utility billing system at every stage – from consultation and system design to installation to ongoing optimizations.
Interested in partnering with a utility billing company that goes beyond the RBC letters? Get in touch with Synergy utility billing.
