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Guide Texas (TX)

Texas utility billing and RUBS: what landlords should know

By MeterEase · Updated

Texas has some of the most detailed water allocation rules in the country. The Public Utility Commission’s rules in 16 TAC chapter 24, subchapter I, set how apartment owners submeter or allocate water and sewer, which formulas are allowed, and what the bill must show. Texas Water Code § 13.503 is the underlying statute.

What the Texas sources say

  • Before allocating, the owner deducts common-area use and the customer charges set out in the rule, then splits the rest by an approved formula (16 TAC § 24.281).
  • Approved formulas include actual occupants, weighted occupants, bedroom factors, occupants plus square footage (square footage no more than half), and submetered hot or cold water ratios (16 TAC § 24.281).
  • Owners register with the PUC for submetered or allocated service (16 TAC § 24.275). Texas Water Code §§ 13.502–13.503 are the underlying statutes.
  • For this purpose an “apartment house” has five or more units. The PUC’s reference sheet says single-family homes, duplexes, triplexes and buildings with four or fewer interconnected units do not qualify, and points to an “all bills paid” approach as an alternative.

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

  • Subchapter I (16 TAC §§ 24.275–24.287) sets owner duties, including what the rental agreement must disclose. Use the PUC’s reference sheet as your checklist.
  • Bills to tenants show the information the rules list, such as the master bill total and the tenant’s factor (see 16 TAC § 24.283).
  • Keep records of each month’s master bill and calculation.

Electricity and gas

These PUC water rules do not cover electricity. Check the Texas Utilities Code and your electric provider before billing tenants for electricity.

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 Texas 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 Texas?

For water and sewer, the PUC’s rules in 16 TAC chapter 24 allow registered owners of apartment houses (five or more units) to allocate using approved formulas, with lease disclosures and bill content set by the rules. This is general information, not legal advice.

Which formulas can a Texas landlord use?

The rule lists actual occupants, weighted occupants, bedroom factors, occupants plus square footage (square footage no more than half) and submetered hot or cold water ratios.

Can I use RUBS on a Texas duplex or fourplex?

The PUC’s apartment-house rules apply to buildings with five or more units; its reference sheet says duplexes, triplexes and buildings with four or fewer interconnected units do not qualify. Check your lease and local rules, and the PUC, before billing a smaller property.

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.