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Guide Illinois (IL)

Illinois utility billing and RUBS: what landlords should know

By MeterEase · Updated

Illinois has a disclosure law for master-metered utilities. Under the Tenant Utility Payment Disclosure Act, 765 ILCS 740/5, a landlord may not demand a tenant’s share of a master-metered utility bill unless the allocation formula was given to the tenant in writing first. The total charged to tenants for a billing period may not exceed the utility’s bill, and the landlord provides the bill on request.

What the Illinois sources say

  • Before demanding payment of a tenant’s share of master-metered utility service, the landlord gives the tenant the allocation formula in writing, in the lease or another written agreement (765 ILCS 740/5).
  • The formula covers all users of the service and may account for apartment size or usage.
  • Total charges to tenants for a billing period may not exceed the utility’s bill for the building.
  • The landlord provides a copy of the utility bill on request.
  • Chicago’s Residential Landlord and Tenant Ordinance adds its own rules, including on utility shutoffs.

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

  • Put the allocation formula in the lease or another written agreement before you bill.
  • Keep each month’s utility bill so you can show it on request.
  • In Chicago and other cities with local ordinances, check your lease and local rules.

Electricity and gas

The Act covers master-metered public utility service generally. Check your utility’s terms before billing electricity or gas.

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 Illinois 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

Can Illinois landlords split a master water bill among tenants?

The Tenant Utility Payment Disclosure Act lets a landlord bill a tenant’s proportionate share only after giving the formula in writing, and the total may not exceed the utility’s bill. This is general information, not legal advice.

Can a tenant see the master bill?

Yes. Under 765 ILCS 740/5 the landlord provides the utility bill on request.

Does Chicago have extra rules?

Chicago’s Residential Landlord and Tenant Ordinance has its own provisions. Check your lease and local rules.

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.