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Investigation Reveals Utility Fees Can Lead to Eviction for Tenants

A new investigation has highlighted how add-on utility fees, known as "ratio utility billing system" (Rubs) fees, can contribute to tenant evictions across the US.

  • Rubs fees are charged by landlords, often through third-party billing companies, unlike standard utility bills paid directly to utility providers.
  • Many leases allow for eviction due to unpaid Rubs fees, even if rent has been paid.
  • At least 13 lawsuits challenging Rubs have been filed across five US states since early 2025.

An investigation co-published by the Guardian and the Economic Hardship Reporting Project has uncovered a nationwide issue with add-on utility fees, known as "ratio utility billing system" (Rubs) fees, which are charged in addition to rent. These fees are owed to landlords, often via a third-party billing company, rather than directly to utility companies.

The investigation found that many leases are structured so that tenants can face eviction for not paying these utility charges, even if their rent is up to date. For some, like 81-year-old disabled Alzheimer’s patient Constance Soule, falling behind on these charges can result in eviction notices.

Tenants in Los Angeles and Seattle have initiated "Rubs strikes," refusing to pay utilities until landlords agree to reduce charges that can reach nearly $300 per month per apartment. Since the beginning of 2025, at least 13 lawsuits have challenged Rubs across five states, including a case in California that led to a settlement of almost $500,000 last autumn with a national property manager. Efforts to limit or ban these add-on utility fees are also gaining traction in several cities.

Why this matters: The investigation highlights a growing problem of inequality and poverty in the US, where specific utility fees can lead to housing insecurity for vulnerable tenants.

What this means for you: If you are a tenant in the US, be aware that some leases may include "ratio utility billing system" (Rubs) fees, which are separate from your rent and can lead to eviction if unpaid.

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