Guide 2 to 4 units
Utility bill-back for duplexes and fourplexes
In a duplex or fourplex with one shared meter, the owner pays the utility bill and bills each unit a share using a method the lease names: an equal split, square footage, occupants, or a 50/50 blend. If you live in one of the units, your unit takes its share like any other. Decide in advance who pays for a vacant unit.
Worked example: a duplex gas bill
Example numbers only. A duplex shares one gas meter. The bill is $214.36. The upstairs unit is 950 sq ft with 3 people; downstairs is 1,250 sq ft with 1 person.
| Method | Upstairs | Downstairs |
|---|---|---|
| 50/50 even split | $107.18 | $107.18 |
| Square footage (950 vs 1,250) | 43.18% · $92.56 | 56.82% · $121.80 |
| Occupants (3 vs 1) | 75.00% · $160.77 | 25.00% · $53.59 |
| 50/50 blend of sq ft and occupants | 59.09% · $126.67 | 40.91% · $87.69 |
For gas heat, square footage is the usual fit, since heating follows space. If this duplex is owner-occupied and the owner lives downstairs, the owner pays $121.80 and bills upstairs $92.56. Try other numbers in thefree RUBS calculator.
Fourplexes and vacancies
With four units, a vacancy matters more. If the vacant unit stays in the totals, the owner pays its share and the other three tenants pay the same as if it were rented. If it is dropped, the occupied units absorb its share, which tenants rarely expect. The RUBS calculation guide walks through a fourplex with one vacant unit.
Options for buildings with 2 to 4 units
- Separate meters: tenants open their own accounts; nothing to bill back.
- Included in rent: a fixed estimate in rent; see utilities included vs billed separately.
- Formula bill-back: split each bill by the lease method and send a short statement with the master bill.
- Submeters: bill each unit’s measured use; weigh the install cost against the bill size.
Rules differ by state and city, and some apply only to certain property types. Seewhat to check before you bill.
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 I split utilities in a duplex?
With two units, the choice is usually an even 50/50 split, a split by square footage, or a split by occupants. If the units are similar, 50/50 is simple. If one is much larger or has more people, a ratio method is easier to defend. State the method in each lease.
I live in one side of my duplex. How does my unit count?
Treat your unit like any other unit in the formula and pay its share yourself. Billing only the tenant side for the whole building bill would charge them for your use.
Is a utility bill-back worth it for a fourplex?
It depends on the size of the bills and how much time the monthly split takes. For one or two utilities on a fourplex, a consistent formula and a short monthly statement are often enough. Compare against building a fixed estimate into rent.
Should I install submeters in a duplex or fourplex?
Submeters give each unit its actual use, but they cost money to install and read. For buildings with a few units, landlords often compare that cost against a formula split or separate utility accounts.
Do the same rules apply to a duplex as to a large apartment building?
Not always. Some state utility billing rules apply only above a certain number of units or to certain property types, and others apply to any rental. Check what applies to your property. This is general information, not legal advice.