Guide Water and electric

How to bill tenants for water and electric

By MeterEase · Updated October 13, 2026

If each unit has its own meter, tenants can usually open their own utility accounts. If the building has one master meter, the landlord pays the bill and either builds an estimate into rent, bills each unit from a submeter reading, or splits the bill by a formula (RUBS) that the lease states. Water is commonly split by occupants; electricity is more often handled with submeters, and some places limit formula splits for it.

Three ways to bill a shared meter

Approach	How the charge is set	Trade-off
Included in rent	Estimated yearly cost built into rent	Simple; owner carries rate and usage swings
Submeter	Each unit’s metered use × the utility’s rate	Most precise; meters cost money to install and read
Formula (RUBS)	Bill split by occupants, sq ft, bedrooms or a blend	No hardware; an estimate of each unit’s use

Worked example: water split by occupants

Example numbers only. A six-unit building gets a combined water and sewer bill of $538.20. The lease splits it by occupants. There are 13 occupants in total.

Unit	Occupants	Share	Amount
101	1	7.69%	$41.40
102	2	15.38%	$82.80
103	2	15.38%	$82.80
104	3	23.08%	$124.20
105	1	7.69%	$41.40
106	4	30.77%	$165.60
Total	13	100%	$538.20

Each occupant’s portion is $538.20 ÷ 13 = $41.40, so a two-person unit pays $82.80. Try it with your units in thefree RUBS calculator, or see how the result changes with square footage.

Electric: check the rules first

Electricity is where local rules differ most. As one example, Minnesota requires a landlord who bills electricity separately from rent to use submeter readings rather than apportioning the bill. Other states regulate submetering through their utility commission. Before billing electricity on a shared meter, confirm what your state and city allow. This is general information, not legal advice.

What to send each tenant

The utility, the service period and the master bill total.
The method and the unit’s factor, such as 2 of 13 occupants.
The tenant’s amount and due date.
A copy of the master bill.

See the utility bill template for tenants for a full layout.

Run this split every month without the spreadsheet

MeterEase reads the master bill PDF, applies your method and vacancy rule, and emails each tenant their share with the source bill attached, after you check the numbers. Plans start at $14/month.

Questions

How do landlords bill tenants for water with one meter?

With one master meter, the landlord receives the water and sewer bill and divides it among units by a formula stated in the lease, most often by occupants or a blend of occupants and square footage. Each tenant gets their share with a copy of the master bill.

Can I bill tenants for electricity on a shared meter?

It depends on where the property is. Some states only allow landlords to bill separately for electricity based on a submeter reading, and some do not allow it to be split by formula at all. Check your state and local rules before billing electricity. This is general information, not legal advice.

Is water usually split by occupants or by square footage?

Water use tends to follow the number of people, so occupants or a blend with square footage is common. Square footage on its own tends to overcharge a single person in a large unit.

Can I charge more than the utility charged me?

Many places limit tenant utility charges to what the utility actually billed the property, and some allow only specific disclosed fees. Keep tenant shares at or below the bill unless your local rules clearly allow a fee.

What about sewer and trash?

Sewer is often billed with water and split the same way. Trash is usually a flat charge, so an equal split per unit is common.

Related guides

Sources

Example numbers on this page are made up to show the math. This guide is general information, not legal advice; rules differ by state, city and utility.