Guide California (CA)

California utility billing and RUBS: what landlords should know

By MeterEase · Updated October 14, 2026

California has detailed rules for water submeters and shared gas and electric meters. Civil Code §§ 1954.201–1954.219 set disclosures and allowed charges when a landlord bills from water submeters, and § 1940.9 covers gas and electric meters that serve more than one unit. The sources reviewed here do not set out a statewide RUBS formula for water, so check your lease and local rules before splitting by formula.

What the California sources say

When a landlord bills tenants from water submeters, Civil Code § 1954.204 requires written disclosures before the lease is signed, including that water is billed separately, an estimate of the bill, and how charges are calculated.
Civil Code § 1954.205 lists what a landlord may charge for submetered water: the unit’s usage, a share of the fixed charges, a limited billing fee and certain late fees.
Civil Code § 1940.9 applies when a tenant’s gas or electric meter also serves areas outside the unit. The landlord discloses it before the lease and the parties agree in writing on how it is handled.
Many California cities have their own rent and fee rules. Rent-stabilized units can have extra limits on new charges.

Each point links to its source at the bottom of this page. Rules change, and cities, counties and utilities can add their own. Read the source before you rely on it.

Where the sources are thin

California sources are detailed for water submeters and shared gas and electric meters. We did not find a state statute that sets a RUBS formula for water. Check your lease and local rules, and talk to a local attorney before using a formula split in California.

Common lease and disclosure practices

For submetered water: the written disclosures in § 1954.204, delivered before the lease is signed.
For a shared gas or electric meter: the § 1940.9 disclosure and written agreement.
For a formula split: state the utilities, the method and how vacancies and common areas are handled. Check your lease and local rules.

Electricity and gas

Gas and electric shared meters fall under Civil Code § 1940.9. Utility tariffs approved by the California Public Utilities Commission also affect resale of energy, so check with your utility before billing tenants for electricity.

How to split it fairly

Where a formula split is allowed, pick one method, put it in the lease, and use it every month. Water tends to follow the number of people, so occupants or a blend of occupants and square footage is common. Trash is usually split equally per unit. Take common-area use out first if your rules call for it, and never bill tenants more in total than the master bill plus any fee your rules allow.

Run your units through the free RUBS calculator to see each tenant’s share.
Compare methods in square footage vs occupants.
Send each tenant the master bill total, the method, their factor and their amount. The tenant utility bill template shows a layout.
Want it done every month? Sign up for MeterEase and it emails each tenant their share with the source bill attached, after you check the numbers.

Not legal advice. This page summarizes public sources in plain English as of the date above. It is not legal advice and does not mean any billing method complies with the law for your property. Check your lease and local rules, and talk to a California attorney if you are unsure.

Other states

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

Can California landlords charge tenants for water?

Many do. When billing from water submeters, Civil Code §§ 1954.201–1954.219 set required disclosures and the charges allowed. For a formula split without submeters, check your lease and local rules. This is general information, not legal advice.

What must a California landlord disclose for submetered water?

Civil Code § 1954.204 lists written disclosures given before the lease is signed, including that water is billed separately and an estimate of the monthly bill.

What about a shared electric or gas meter?

Civil Code § 1940.9 requires disclosure and a written agreement when a tenant’s gas or electric meter also serves areas outside the unit.

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.