Utility billing laws for landlords, by state
Before you split a shared water, gas, or electric bill among your tenants, your state probably has something to say about how. These guides summarise what we have researched so far, with the statute citations, so you know what to look up.
This is information, not legal advice.
SplitDue performs the math; you are responsible for following your state and local rules on utility billing to tenants. Most states require the allocation method to be disclosed in the lease, prohibit billing tenants more than the actual utility cost, and some cap or prohibit admin fees. This is not legal advice. Rules were reviewed September 2026 (version 2026-09) and are not exhaustive — cities frequently add their own requirements. Confirm current law with a local attorney before you bill.
States we have researched (14)
- ArizonaLease must list the utilities, the method, and any fee. 90 days' notice to change it.Allowed if disclosed; must reflect actual cost
- CaliforniaSubmetered water is capped statewide, and several cities restrict pass-through billing outright.Allowed if disclosed; must reflect actual cost
- ColoradoAllocated billing is allowed with clear disclosure, but markups and admin fees are restricted.Not allowed on allocated bills
- FloridaElectric apportionment may recover no more than actual cost.Allowed if disclosed; must reflect actual cost
- GeorgiaDisclose the water allocation before the lease is signed; cost plus a reasonable fee only.Allowed if disclosed; must reflect actual cost
- IllinoisGive the written formula before billing, and include every user of the utility.Allowed if disclosed; must reflect actual cost
- MarylandThe lease must disclose the method and recent bills; tenants may inspect the master bill.Allowed if disclosed; must reflect actual cost
- MassachusettsAllocated (ratio) billing generally is not permitted — certified submeters only.Not allowed on allocated bills
- MinnesotaGas by square footage, water by tenants, electricity not at all. Admin fee capped at $8.Capped at $8.00 per bill
- New JerseyJersey City requires a separate signed disclosure and bars billing for vacant units.Allowed if disclosed; must reflect actual cost
- New YorkElectric only through PSC-approved submetering; ratio allocation is not permitted.Allowed if disclosed; must reflect actual cost
- OregonMethod must be in the lease, and no admin or service fee is allowed on allocated utilities.Not allowed on allocated bills
- TexasAllocated water requires PUC registration, set methods, and a common-area deduction.Not allowed on allocated bills
- WashingtonSeattle caps admin fees at $2 per utility and requires itemized bills with a dispute contact.Allowed if disclosed; must reflect actual cost
Rules that apply almost everywhere
Even where a state has no statute specific to allocated utility billing, the same principles turn up in general landlord-tenant law and in the leases courts are willing to enforce.
- Disclose the method in the lease. The tenant should be able to see how their share is calculated before they sign, not after the first bill arrives.
- Never bill more than the utility charged. Every tenant share added together must not exceed the master bill. Utility billback is cost recovery, not revenue.
- Exclude common areas. Hallway lighting, laundry rooms, and irrigation are the owner's expense. Some states set a minimum percentage you must deduct.
- Do not bill tenants for vacant or owner-occupied units. Those shares are yours to absorb.
- Keep the bills. Several states require you to retain the master bills, often for two years, and to show them to a tenant who asks.
States we have not researched yet
We would rather say nothing than publish a page that looks authoritative and is not. We have not yet researched the rules in these 37 jurisdictions, so treat the general principles above as a starting point and check your state's landlord-tenant statute and your city's ordinances:
Alabama, Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming.
Built with these rules in mind
SplitDue shows the relevant note for your property's state while you set up a utility, warns you when an admin fee exceeds what that state allows, and never lets the tenant shares add up to more than the bill you entered. Rules last reviewed September 2026.
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