Guide Leases

Sample RUBS lease addendum (utility addendum)

By MeterEase · Updated

This is a sample, not legal advice. It shows the parts a utility addendum usually covers. It is not a form approved for any state. Utility billing rules differ by state, city and utility, and some states require their own wording or do not allow formula billing for some utilities. Have a lawyer licensed where the property sits review it before you use it.

A RUBS addendum turns each month’s utility bill into arithmetic that you and the tenant agreed to in advance. It names the utilities, the method, the inputs, and how tenants see the math. The sample below has blanks in brackets. For the reasoning behind each part, read how to add a RUBS clause to your lease.

Sample utility addendum

SAMPLE ONLY. NOT LEGAL ADVICE. HAVE THIS REVIEWED FOR YOUR STATE BEFORE USE.

Utility Addendum to the lease dated [date] between [Landlord] and [Tenant(s)] for [address, unit].

1. Utilities billed under this addendum. The following services are billed to Landlord for the property and are not included in rent: [water, sewer, trash]. [Electric and gas are in Tenant’s name and paid directly to the provider.]

2. No separate meter. The Unit does not have its own meter for the utilities in section 1. Tenant’s share is figured by the method in section 3.

3. Allocation method. Tenant’s share of each bill is [the Unit’s square footage, ___ sq ft, divided by the total square footage of all occupied units / the number of occupants listed on this lease divided by the total occupants listed on all leases / a blend: ___% by square footage and ___% by occupants].

4. What is passed through. The amount allocated is the provider’s bill for the period, less [late fees and penalties, and the estimated common-area and owner share of ___% / $___]. The total billed to all tenants will not exceed the provider’s bill.

5. Vacant units. Landlord pays the share of any vacant unit.

6. Partial periods. For any billing period Tenant does not occupy the Unit for the full period, Tenant’s share is prorated by days.

7. Fee. [No administrative fee is charged. / An administrative fee of $___ per billing period is charged.]

8. Statements and payment. Landlord will send a statement for each billing period showing the period, the provider’s total, the method, Tenant’s inputs and the calculation, with a copy of the provider’s bill. Payment is due [___ days] after the statement is sent, by [method].

9. Records. Tenant may ask to see the provider’s bills and the calculation for any period billed.

10. Changes. Landlord will give at least [___ days] written notice before changing the method, effective no earlier than [lease renewal].

Landlord: __________ Date: ______ Tenant: __________ Date: ______

State notes before you adapt it

These are examples, each linked below. Read your state’s guide and its sources, not only this list.

  • Arizona: the rental agreement lists the services billed separately and any administrative fee, and gives a specific description of the RUBS method (A.R.S. § 33-1314.01(B), (G)). See the Arizona guide.
  • Maryland: prospective tenants get written disclosures before the lease, including the last two utility bills, the method for each utility and the prior year’s average monthly bill (Real Property § 8-212.4(c)). See the Maryland guide.
  • Minnesota: leases entered into or renewed since January 1, 2025 with apportioned gas, water or sewer include a notice attachment worded in the statute, and the statute sets the formulas (Minn. Stat. § 504B.216, subd. 10). See the Minnesota guide.
  • Illinois: the allocation formula is given to the tenant in writing before the landlord asks for a share of a master-metered bill (765 ILCS 740/5). See the Illinois guide.
  • Colorado: the method is disclosed clearly and conspicuously in the rental agreement or an addendum, with no markup or extra fee and no common-area costs (HB26-1013). See the Colorado guide.
  • Virginia: methods include square footage, occupancy, bedrooms or another method agreed in the lease, with limits on fees and late charges (Va. Code § 55.1-1212). See the Virginia guide.
  • Connecticut: for rental agreements entered into or renewed on or after October 1, 2026, a provision that the tenant pays for utilities billed to the tenant when no separate meter measures the unit’s exclusive use is unenforceable (Public Act 26-113). See the Connecticut guide.

For states with stricter rules, see where RUBS is limited or not allowed.

Test the method before you sign

Run last year’s bills through the RUBS calculator to see what each unit would have paid, and use the bill-back letter generator to explain the change to current tenants.

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 this a ready-to-use lease addendum?

No. It is a sample that shows the parts a RUBS or utility addendum usually covers. It is not legal advice. Have a lawyer licensed in the state where the property sits review and adapt it before you use it.

What does a RUBS addendum usually include?

Which utilities are billed, the allocation method and each input, how vacancies, common areas and partial months are handled, any fee, how and when tenants are billed, how to see the master bill, and how changes are made.

Do some states require specific wording?

Yes. Minnesota, for example, requires a set notice attachment for leases with apportioned gas, water or sewer entered into or renewed since January 1, 2025, and Maryland requires specific written disclosures before the lease. Read your state’s guide and its sources.

Can I add this to a current lease?

Usually only by agreement or at renewal, and some states require advance notice before starting RUBS. 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.