Los Angeles tenants facing steep, fluctuating utility charges through ratio utility billing systems are demanding billing transparency and even organizing rent strikes, according to recent reports. Renters at multiple properties across the city report that third-party billing companies and landlords use formula-based charges that split master-metered utility totals without providing the underlying calculations or specific invoices.
Rising Bills and Opaque Calculations at Los Angeles Apartments
Joe Porter moved into a Koreatown studio apartment five years ago with a base rent of about $1,500 a month. A leasing agent told him he would likely pay an additional $50 monthly for utilities. However, three years after moving in, Porter’s monthly bill for trash, sewer, and water more than doubled from $86 to $182. According to Porter, city utility water rates did not increase at the same rate, and when he and his neighbors asked to see the math, property management provided only a general overview rather than specific bills.
Porter wasn’t billed directly by a traditional utility provider. Instead, a third-party company named Conservice billed him using a ratio utility billing system (RUBS). Under this practice, landlords do not charge residents for individual usage. They send statements based on a formula applied to the building’s total usage. When Porter asked Conservice for proof of his specific charges, a representative directed him back to his property manager, according to an email shared with The Times.
Similar frustrations emerged downtown, where hairstylist Hanna Yoseph lives in a two-bedroom unit in a towering glass building. Yoseph’s monthly rent remains $3,400, but her utility bill from a third-party company, Yes Energy Management, fluctuates significantly. In March 2025, Yoseph owed $332.50 for shared utilities including water, wastewater, hot water, and HVAC. Three months later, her bill rose to $417.99, and by October of that year, it reached $541. Yoseph stated she didn’t know how to budget for the unpredictable costs.
Yoseph said she called Yes Energy Management to view the bills leading to her individual charges and was told she needed permission from the property management company. Emails shared with The Times show that Yoseph and her tenants association repeatedly emailed management before receiving an offer for an in-person meeting to view the bills. Tenants responded that they wanted digital copies to perform their own calculations and did not receive a response. Yoseph noted that a Yes Energy Management representative later told her she would try to obtain copies of the master bill calculations.
Did You Know? Two decades ago, researchers working on behalf of the National Apartment Assn. and city governments surveyed roughly 8,000 properties across the U.S. and found that renters living in 1 out of every 4 apartments were billed using RUBS. Today, major landlord organizations such as the National Apartment Assn. and the National Multifamily Housing Council do not track these numbers.
Legal Scrutiny and Tenant Demands for Billing Transparency
Disputes over third-party utility billing have already entered the legal system. In 2022, attorneys in San Diego sued Conservice in a class-action lawsuit on behalf of California renters. Lawyers alleged that Conservice maintained a policy of denying tenants the right to view specific bills or formulas used to calculate individual charges. Brett Kraus, senior counsel for utility services at Conservice, stated in an email that the company does not have a nondisclosure policy, noting, “Our goal is to provide residents with clear, accessible information so they fully understand how their individual utility charges are calculated.”
Tenants in the lawsuit argued that the company uniformly failed to provide exact calculations, which they claimed violated state law and a tenant’s common law right to review bills. In a settlement agreement reached last year, Conservice agreed to provide any California tenant disputing a bill with copies of invoices and formulas used to determine specific charges. Porter’s communication with Conservice occurred in 2023, prior to that settlement.
Both landlord and tenant representatives express support for bill transparency. In December, the Los Angeles Housing Department recommended that city officials adopt rules clarifying that tenants have a right to review master utility bills and establishing a formal dispute process. Daniel Yukelson, executive director of the Apartment Assn. of Greater Los Angeles, stated, “If your customer is paying for it, they should know what they’re paying for.” The Los Angeles Housing Department also recommended outlawing RUBS in rent-stabilized homes, estimating that 19% of homes subject to rent stabilization rely on master-metered utilities and likely use RUBS, affecting roughly 123,000 apartments.
Expert Insight: The friction surrounding ratio utility billing systems highlights a core regulatory tension in urban housing markets. While property owners argue that sharing utility costs incentivizes conservation in older buildings where individual submeters are impractical or costly, consumer advocates and tenants emphasize that opaque billing formulas remove individual control over expenses and create severe budgeting unpredictability for renters.
Tenant Pushback and Retaliation Concerns at Virgil Square Apartments
Facing unresponsive management regarding master bill calculations, roughly four dozen residents at the Virgil Square Apartments sent a letter last summer to property owner Equity Residential. The letter stated that residents would refuse to pay their utility bills until they could see the specific calculations used to determine the charges. Tenants also argued that the billing system stripped them of control, noting in their letter that nobody had control over how much water neighbors used or whether the pool stayed open during the winter.
Equity Residential, which owns approximately 15,000 apartments in the L.A. metro area, did not respond to a list of questions regarding the complaints. Tenants at Virgil Square reported being threatened with eviction after hanging signs outside their balconies to draw attention to the utility billing method.
Discussions around conservation remain sharply divided. Caitlin Moran, a downtown tenant living in a studio apartment, expressed frustration that lack of control over shared utility costs diminishes incentives to conserve. Conversely, Fred Sutton, senior vice president of public affairs for the California Apartment Assn., defended the practice, arguing that RUBS gives tenants “skin in the game” by connecting them more closely to shared utility costs in older buildings. Marc Treitler, general counsel and president of sustainability at Conservice, stated in emails that the company helps parties save by auditing bills directly from providers, noting they have found tens of millions of dollars in overcharges that lower tenant costs.
However, studies on water conservation yield mixed results. A 1999 study of 32 multifamily properties across Texas, Florida, and California found that renters at submetered properties used 39% fewer gallons per year than those with utilities included in rent, while renters billed via RUBS used 20% less water. A subsequent 2004 study found that while submetering encouraged conservation, there was no statistically significant difference in water usage between properties with utilities included in rent and those using RUBS. Peter Mayer, a Colorado-based water use consultant and lead researcher on the 2004 study, suggested that RUBS might create an anti-conservation incentive, explaining that it can become economically advantageous to maximize water usage if an individual wants to maximize their investment.
Porter, who continues to withhold his RUBS payments in Koreatown, stated he has been setting aside the owed money so he is ready to pay once he can verify the calculations. “I’m willing to pay it if someone will show me it’s legitimate,” he said.
Frequently Asked Questions
What is a ratio utility billing system (RUBS)?
According to housing reports, RUBS is a practice where landlords take master-metered utilities and split the total cost among tenants based on a formula tied to apartment size or the number of occupants, rather than measuring individual usage.
Why are Los Angeles tenants refusing to pay their utility bills?
As seen at the Virgil Square Apartments, roughly four dozen residents began refusing to pay after property management and third-party billing companies declined to provide specific bills, invoices, or mathematical calculations showing how their individual charges were determined.
What actions have local officials taken regarding RUBS?
In December, the Los Angeles Housing Department recommended that city officials outlaw RUBS in rent-stabilized homes and establish clear rules guaranteeing tenants the right to review master utility bills and dispute charges.
What steps should local authorities take to balance landlord conservation goals with tenant billing transparency in master-metered buildings?
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