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Guide Colorado (CO)

Colorado utility billing and RUBS: what landlords should know

By MeterEase · Updated

Colorado added a RUBS rule in 2026. HB26-1013, signed March 26, 2026, amends C.R.S. § 6-1-737 to allow landlords to allocate utility costs among tenants with a ratio utility billing system if the total billed does not exceed the utility’s charge, no markup or extra fee is added, common-area costs are left out, and the method is disclosed in the rental agreement.

What the Colorado sources say

  • Landlords may allocate utility costs among tenants of the same premises with a ratio utility billing system if the conditions in C.R.S. § 6-1-737(4.5) are met (HB26-1013).
  • The total billed to all tenants may not exceed what the utility charged for the whole premises.
  • No markup, surcharge, administrative fee or other amount beyond the utility’s actual charges, except as otherwise permitted by law.
  • Utility costs for common areas or shared facilities are excluded from tenant allocations.
  • The method of allocation is clearly and conspicuously disclosed in the rental agreement or an addendum.
  • For premises built with permits applied for on or after July 1, 2027, gas, electric and water service must be metered by the utility or a submeter.

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.

Common lease and disclosure practices

  • Disclose the allocation method for the unit clearly in the lease or an addendum.
  • Leave common-area and shared-facility costs out of the split.
  • Bill no more in total than the utility charged, with no added fee unless another law permits it.

Electricity and gas

The RUBS provision applies to utility costs generally, and the post-July 2027 metering rule covers gas, electric and water. Check with your utility as well.

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.

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 Colorado 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.

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Questions

Is RUBS legal in Colorado?

HB26-1013 (2026) amended C.R.S. § 6-1-737 to allow RUBS when the total does not exceed the utility’s charge, no markup or fee is added, common areas are excluded and the method is disclosed in the lease. This is general information, not legal advice.

Can a Colorado landlord add a billing fee to RUBS charges?

The statute bars any markup, surcharge, administrative fee or other amount beyond the utility’s actual charges, except as otherwise permitted by law.

Are common areas included in a Colorado split?

No. Common-area and shared-facility utility costs are excluded from tenant allocations.

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.