Tenant communication MeterEase blog
How to tell tenants about a utility rate increase
Utilities change their rates, and when they do, tenants who pay a share of the bill will see it. If you bill utilities back, the rate change is not your decision, but how tenants hear about it is. A short heads-up before the first higher bill turns a surprise into a known change, and it takes only a few minutes.
This post is for landlords who already bill tenants a share of a master bill. If you are thinking about raising a flat utility fee or rent, that is a different change, governed by your lease and local law; talk to a local attorney about notice.
Where to find out about rate changes
- Notices with or on the bill. Many utilities print a rate-change notice on the bill or include an insert.
- The utility’s website. Look for a rates page, a rate schedule or a news section.
- City council or board agendas, for city-owned water and sewer utilities.
- Your state’s utility regulator, for privately owned utilities that file rates with the state. Our Useful links page lists each state’s utility regulator.
When you find one, save a copy or link of the notice. You will want to share it.
Tell tenants before the first higher bill
The best time is when you learn about the change, or with the last statement before it takes effect. Tenants then know what is coming, and the first higher statement does not look like a mistake.
What to include
- What changed, and who changed it. “The [city water department] is raising water and sewer rates starting [date].”
- A source. A link to the notice, or a copy attached.
- What it might mean for them. Ideally an estimate using a recent bill. Label it as an estimate.
- What is not changing. Your method, their share percentage, your vacancy rule.
- How to ask questions.
Example estimate (made-up numbers)
Suppose a recent water and sewer bill was $480, and the utility says its rates go up 8%. If the building uses the same amount, the next comparable bill would be about $480 × 1.08 = $518.40. A unit with a 25% share would go from $120.00 to about $129.60, an increase of about $9.60.
Real increases are often not a flat percentage across the whole bill. Fixed charges, usage tiers and sewer may change by different amounts, so present the figure as a rough estimate, not a promise.
Notice template
Hi [Name],
A heads-up: the [utility name] is changing its [water and sewer] rates starting [date]. Their notice is [attached / here: link].
Your share is figured the same way as always: [25%] of the building’s bill, based on [square footage]. Only the utility’s prices are changing.
As a rough estimate, if the building uses about the same amount as on the [month] bill ([$480]), the new rates would make that bill about [$518], and your share about [$129.60] instead of [$120.00]. The actual amount will depend on usage and on which charges change.
As always, each statement will include the bill so you can see the rates for yourself. If you have questions, just reply.
[Your name]
On the first statement after the change
Add one line: “This is the first bill at the [utility]’s new rates, which took effect [date].” Attach the bill as usual. Our sample utility bill emails include a “high-bill month” note you can adapt.
Help tenants use less
A rate increase is a good moment to remind tenants how to keep the building’s bill down: report leaks and running toilets quickly, and run full loads. EPA’s WaterSense program has water-saving tips you can link to. Fixing building-side leaks quickly helps everyone, including you if you pay vacant units’ shares.
If the increase changes your plans
A big increase can make you rethink how you handle utilities, for example moving from a flat fee to ratio billing at renewal, or the reverse. Our posts on ratio billing vs flat utility fees and how to figure your utility cost per unit can help you run the numbers, and our state guides cover the rules where we found them. Any change to the lease should go through your attorney.
MeterEase attaches the source bill to every tenant email, so new rates are visible on the bill itself, and shows each tenant how their share was figured. See how it works.
Split the bill and email every tenant in minutes
MeterEase reads the master bill PDF, applies your method and vacancy rule, and emails each tenant their share with the math shown and the source bill attached, after you check the numbers, unless you turn on auto-send for a property. Plans start at $14/month.