Home › Utility billing by state

Guide Minnesota (MN)

Minnesota utility billing and RUBS: what landlords should know

By MeterEase · Updated

Minnesota sets the formula by statute. Since January 1, 2025, Minn. Stat. § 504B.216 governs shared-metered residential buildings: water and sewer are apportioned by the number of tenants on each lease, natural gas by square footage, electricity may not be apportioned, and fees are capped. Leases entered into or renewed since then need a required notice attachment.

What the Minnesota sources say

  • In a shared-metered residential building, the landlord is the utility’s customer of record and bill payer (Minn. Stat. § 504B.216, subd. 2).
  • Apportionment of electricity is prohibited (subd. 5(a)).
  • Water and sewer are apportioned from the previous period’s bills by the number of tenants listed on each lease as a share of occupancy of all units; no charges for common areas, landlord spaces, vacant units, maintenance or shared amenities like laundry and pools (subd. 7).
  • Natural gas is apportioned by each unit’s square footage as a share of all units; no charges for common areas, landlord spaces or vacant units (subd. 6).
  • Tenants are billed no less often than the landlord is billed, and on request get copies of the current bill and up to two years of past bills (subd. 5).
  • One administrative billing charge of up to $8 per billing period, and one late charge of up to $5 per month, not compounded (subds. 8, 9).
  • A landlord may not disconnect a tenant’s utility service for nonpayment (subd. 12).

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

The Revisor notes this section was affected by law enacted in the 2026 Regular Session. Check the current text on the Revisor’s site before relying on it.

Common lease and disclosure practices

  • Leases entered into or renewed on or after January 1, 2025 include the statutory “How Will My Bill be Calculated?” attachment (subd. 10).
  • The lease or a separate notice lists the tenant’s right to copies of bills (subd. 5(d)).
  • By September 30 each year, tell tenants billed for gas or electric about energy assistance (subd. 15).

Electricity and gas

Minnesota prohibits apportioning electricity. Submetered electricity and gas must follow §§ 216B.022 to 216B.024 (subd. 3).

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 Minnesota 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.

Sign upSign in

Questions

Is RUBS legal in Minnesota?

Minn. Stat. § 504B.216 lets landlords apportion water and sewer (by occupancy) and natural gas (by square footage) in shared-metered buildings, and prohibits apportioning electricity. This is general information, not legal advice.

What fees can a Minnesota landlord add?

One administrative billing charge of up to $8 per billing period and a late charge of up to $5 per month.

What replaced Minn. Stat. § 504B.215?

2024 Minn. Laws ch. 107 repealed § 504B.215 and enacted § 504B.216, effective January 1, 2025.

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.