Money MeterEase blog

What to do when a tenant does not pay their utility share

By MeterEase · Published October 16, 2026

You split the bill, sent each tenant their share, and one of them hasn’t paid. Before you do anything else, remember that the utility usually still expects you to pay the whole bill. Here’s a calm way to handle it.

This is general information, not legal advice. What you can charge and how you can collect it depends on your lease and on state and local law. Talk to a local attorney before you take any step beyond a conversation and a written reminder.

Never shut off a utility to collect

Several states say so directly. For example:

North Carolina: a landlord may not disconnect a tenant’s water, sewer, electric or gas service for nonpayment of those charges (G.S. 42-42.1(b)).
Minnesota: a landlord may not disconnect a tenant’s utility service for failure to pay utility charges (Minn. Stat. § 504B.216, subd. 12).
Delaware: utility charges are treated as rent, and a landlord may not shut off utility service for nonpayment (25 Del. C. § 5312(e)).
Massachusetts: an owner may not shut off water because a separately billed water charge is unpaid (105 CMR 410.130(D)).
Florida: a landlord may not cause a tenant’s utility service to be shut off or interrupted (Fla. Stat. § 83.67).

Pay the utility on time even while you sort out what a tenant owes you.

Step 1: Check the charge

Make sure the bill went out, the math is right, and the tenant got a copy of the bill. A missed email or a wrong occupant count is a common reason for nonpayment. If the tenant thinks the charge is wrong, treat it as a dispute; see what to do when a tenant disputes a utility bill.

Step 2: Send a friendly written reminder

Hi [Name],

Just a reminder that your [month] utility share of [$__] was due on [date]. The bill and the math are attached again. Let me know if you have any questions, or if a payment plan would help.

Keep it in writing so you have a record.

Step 3: Offer a payment plan

A big month or a tight budget is often the reason. A short plan, such as adding a set amount to the next few bills, usually works better than escalating. In Minnesota, the required lease notice for apportioned gas, water and sewer tells tenants they have the right to a reasonable payment plan, and a landlord may not bring a breach-of-lease claim over unpaid utilities until a plan has been offered and the tenant has missed two payments on it (subds. 10 and 12).

Step 4: Know what your lease and state allow next

Options that may apply, depending on where the property sits:

Treating it under the lease. Some states treat utility charges like rent (Delaware does, for example); others handle them as a separate lease obligation.
The security deposit at move-out. In Wisconsin, a landlord may withhold from the deposit amounts owed under the rental agreement for utility service the landlord provided that was not included in rent (ATCP 134.06(3)(a)3.). Check your state’s deposit rules.
Small claims court, for an amount owed after the tenancy ends.

Get local legal advice before you take any formal step.

If the account is in the tenant’s name

When a tenant holds the utility account and doesn’t pay, the property owner can still end up responsible. La Crosse, Wisconsin, for example, says the property owner is always ultimately responsible and unpaid balances are added to the property tax roll, and it offers landlords notice when a tenant falls behind. Ask your utility whether it offers notice like that. See who pays the water bill.

Make it less likely next time

Bill on the same day each month, with the bill and the math attached.
Put the due date and payment method in the lease and on every statement.
Flag unusually high months before the bill goes out.

MeterEase emails each tenant their share with the math and the bill attached, after you review it, unless you turn on auto-send for a property. See how it works or pricing.

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.

Sources

Example numbers in this post are made up to show the math. This post is general information, not legal advice; rules differ by state, city and utility. Check your lease and local rules.