Utility billing laws for landlords in Minnesota
Rules reviewed September 2026
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 Minnesota attorney before you bill.
At a glance
- Admin fee
- Capped at $8.00 per bill
- Lease disclosure
- Required. State the utilities billed and the allocation method before the tenant signs.
- Billing above the utility's bill
- Not permitted. Tenant shares must never total more than the master bill.
- Common areas
- Excluded. Hallways, laundry and irrigation stay the owner's cost.
What Minnesota requires
- Gas must be allocated by square footage and water/sewer by tenants on the lease. Electricity may not be apportioned (Minn. Stat. 504B.216).
- Common areas and vacant units may not be billed to tenants. Admin fee capped at $8 per billing period; late fee capped at $5.
- Keep copies of the actual bills for two years and provide them on request.
How SplitDue handles this
- SplitDue warns you if an admin fee exceeds the $8.00 Minnesota allows per billing period.
- Tenant shares are calculated so they add up to the master bill exactly, never more, and rounding remainders are absorbed rather than collected twice.
- Vacant and owner-occupied units still take their share of every bill, but that share is assigned to you rather than pushed onto the remaining tenants.
- Each tenant bill states the method, the service dates, the inputs used, and the utility's total, which is the disclosure most states expect you to be able to produce.
Related reading
- How to Split a Water Bill Between TenantsFour defensible ways to divide one water bill across units, a worked example that adds up exactly, how to handle submetered and vacant units, and the state rules to check first.
- Utility Billing Admin Fees: Capped, Banned, or AllowedWhich states prohibit admin fees on allocated utility bills, which cap them, and the three mistakes that turn a reasonable fee into a violation.
- When a Tenant Disputes Their Utility ShareThe four disputes landlords actually get, what each one really means, the mistake that turns a disagreement into a legal claim, and how to answer in one message.
Other states
Split your Minnesota bills correctly
SplitDue does the allocation, produces a documented PDF for each tenant, and tracks which periods you have already billed.