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Guide Maryland (MD)

Maryland utility billing and RUBS: what landlords should know

By MeterEase · Updated

Maryland defines RUBS by statute and sets disclosure rules. Real Property § 8-212.4 applies to landlords offering two or more units on one parcel who allocate master-metered electric, gas, sewer or water charges. Prospective tenants get a written packet, including the last two utility bills and the method, and a lease clause requiring RUBS payments is unenforceable without it.

What the Maryland sources say

  • A ratio utility billing system allocates master-metered utility charges among tenants by any method that does not measure actual per-tenant usage. Utilities covered: electricity, gas, wastewater and sewage, and water (Md. Code, Real Prop. § 8-212.4(a)).
  • It applies to a landlord offering two or more dwelling units for rent on one parcel; condominiums and cooperatives are excluded (§ 8-212.4(a), (b)).
  • Prospective tenants receive in writing: a statement that utilities are billed by the landlord and which ones; copies of the last two utility bills; the allocation method for each utility; a statement that billing disputes are between tenant and landlord; the average monthly bill for all units in the previous calendar year; the right to inspect billing records; any service or administrative fees; and a citation to § 8-212.4 (§ 8-212.4(c)(1)).
  • A lease provision requiring the tenant to pay RUBS charges is unenforceable if those disclosures were not given in writing (§ 8-212.4(c)(2)).
  • On written request, tenants may inspect the records behind a utility bill (§ 8-212.4(d)).
  • Counties and cities may adopt stricter local rules, which control where they give stronger protection (§ 8-212.4(e)).

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

  • Give the full written disclosure list in § 8-212.4(c)(1) before the lease is signed.
  • Include the last two master bills and last year’s average monthly bill per utility.
  • Check county rules too (for example Montgomery County or Baltimore City). Check your lease and local rules.

Electricity and gas

Electricity is on the statute’s list of utilities. Check your utility’s terms and any county rules.

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 Maryland 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, unless you turn on auto-send for a property. Plans start at $14/month.

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Questions

Is RUBS legal in Maryland?

Real Property § 8-212.4 defines ratio utility billing and sets written disclosure rules for landlords who use it. This is general information, not legal advice.

What must a Maryland landlord give a prospective tenant?

Among other items, copies of the last two utility bills, the allocation method by utility, the prior year’s average monthly bill, any fees, and a citation to § 8-212.4.

What if the disclosures were not given?

The statute says a lease provision requiring the tenant to pay RUBS charges is unenforceable without them.

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.