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Utility Fees Lead to Eviction Risk for US Tenants

Tenants in the US are facing eviction over unpaid utility charges, even when their rent is paid, due to a system of add-on fees known as "Rubs."

  • Tenants can be evicted for not paying Ratio Utility Billing System (Rubs) fees, even if rent is paid.
  • Rubs fees are often not clearly priced in apartment listings or leases and are owed to landlords.
  • Eight cities in California have banned Rubs, and some states have regulated the practice.

A growing number of tenants in the United States are reportedly facing eviction due to their inability to pay add-on utility fees, known as Ratio Utility Billing System (Rubs) fees, even when their rent has been paid.

These Rubs fees are charged by landlords on top of rent, often through third-party billing companies. Unlike standard utility bills, these charges are owed directly to the landlord. Court documents show that leases including Rubs often allow for eviction if these utility charges are not paid.

The issue has been highlighted by cases such as Constance Soule, who faced eviction in 2024 from her Greystar-managed apartment in California solely over utility charges, despite having paid her rent. Another tenant, Jaslyn Cosey, was evicted from a Greystar building in Las Vegas after state assistance for back rent was reportedly used to cover her fees, leaving her short on rent.

Legal aid organisations and tenant advocates across the US suggest that utility-related eviction cases are becoming more common. Lucie Hollingsworth, policy director of Legal Aid of Marin county, California, estimates that a majority of her agency's current "nonpayment" evictions involve tenants unable to pay utilities.

In response, tenants and their allies are taking action. Eight cities in California have banned Rubs, and several states have passed laws to regulate the practice. Tenants in Los Angeles and Seattle have also initiated "Rubs strikes," refusing to pay these utility charges until landlords agree to reductions.

Why this matters: The practice of charging Rubs fees can lead to unexpected housing cost increases and potential eviction for tenants, even those who consistently pay their rent.

What this means for you: If you are a tenant, understanding the terms of your lease regarding utility payments is crucial, particularly if it includes add-on fees that are owed to your landlord rather than a utility company.

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