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Guide North Carolina (NC)

North Carolina utility billing and RUBS: what landlords should know

By MeterEase · Updated

North Carolina is strict about water. G.S. 42-42.1 lets a landlord charge for water and sewer under a written rental agreement through the Utilities Commission’s process. For apartment complexes and manufactured home parks, the NCUC says charges are based on each tenant’s metered use, and RUBS is not allowed unless the Commission specifically authorizes it.

What the North Carolina sources say

  • Under a written rental agreement, a landlord may charge for water and sewer service under G.S. 62-110(g), and for electric and gas under related subsections (G.S. 42-42.1(a)).
  • A landlord may not disconnect a tenant’s water, sewer, electric or gas service for nonpayment of those charges (G.S. 42-42.1(b)).
  • The NCUC says rates equal the cost of purchased water, all charges other than the administrative fee are based on the tenant’s metered use, and RUBS and hot-water-capture allocation are not allowed unless the Commission authorizes them under Rule R18-8.
  • Resale regulation applies to residential apartment complexes and manufactured home parks; the lessor gets a certificate of authority from the Commission.

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

  • Bill water and sewer only under a written rental agreement and the NCUC’s process.
  • For apartment complexes, use submeters that measure all of each unit’s water, not a formula.
  • For a duplex or a building outside NCUC resale regulation, check your lease and local rules.

Electricity and gas

G.S. 42-42.1 also refers to electric and gas charges under G.S. 62-110(h) and (i). Check the Utilities Commission’s rules before billing tenants for energy.

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 North Carolina 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

Is RUBS allowed for water in North Carolina?

For apartment complexes and manufactured home parks, the NC Utilities Commission says RUBS is not allowed unless it specifically authorizes it; charges are based on metered use. This is general information, not legal advice.

Can a North Carolina landlord shut off water for unpaid utility charges?

No. G.S. 42-42.1(b) bars disconnecting a tenant’s water, sewer, electric or gas service for nonpayment of those charges.

Do I need approval to resell water in NC?

For apartment complexes and manufactured home parks, the NCUC grants a certificate of authority to the property owner to charge for resale of water and sewer service.

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.