Guide Meters

Shared utility meters: what landlords should know

By MeterEase · Updated

A shared meter measures water, gas or electricity for more than one place: two units, or a unit plus a common area. Landlords with a shared meter usually do one of three things: keep the bill in their own name and include it in rent, keep it in their name and bill each tenant a share under the lease, or add meters so each unit is measured. Which of those is open to you depends on your state, your city and your utility.

Where shared meters show up

  • Duplexes, triplexes and older buildings that were never split into separate services.
  • Houses converted into apartments, and ADUs fed from the main house.
  • A unit whose meter also runs a hallway light, laundry room or the owner’s garage.

What some states and utilities say

  • California: when a tenant’s gas or electric meter also serves areas outside the unit, the landlord discloses it before the lease and the parties agree in writing on how it is handled (Civil Code § 1940.9).
  • New York: Public Service Law § 52 covers gas, electric and steam meters that serve a tenant’s unit and other areas.
  • Minnesota: in a shared-metered residential building, the landlord is the utility’s customer of record and bill payer, electricity may not be apportioned, and water, sewer and gas follow formulas set in the statute (Minn. Stat. § 504B.216).
  • Connecticut: the owner of a residential building is liable for utility service to the building except service to a unit that is individually metered or billed for that unit’s exclusive use (Conn. Gen. Stat. § 16-262e(c)). See the Connecticut guide.
  • Wisconsin: if units and common areas are not separately metered and charges are not in rent, the landlord discloses the basis for allocating them before the rental agreement (ATCP 134.04(3)).
  • A city utility example: La Crosse, Wisconsin says that when several units share one water meter, the bill must remain in the landlord’s name, and that the property owner stays responsible for unpaid balances.

Other states are covered in our state guides. Your utility’s own rules matter too, so ask it how it handles shared meters.

Your options

  • Include it in rent. Simple and predictable. You carry the risk of high use.
  • Bill back a share. Keep the bill in your name, put the method in the lease, and send each tenant their share with the bill. Leave out common-area and owner use. The common-area deduction calculator helps with that step.
  • Flat fee. A fixed monthly utility charge, reviewed against actual bills. Try the flat fee calculator.
  • Add meters. Separate services or submeters so each unit is measured. See how to submeter a duplex.

Example with made-up numbers

A duplex shares one water meter. The bill is $160 and the owner estimates $20 of it is the yard spigot the owner uses. That leaves $140 to split. By occupants, with 3 people in Unit A and 1 in Unit B, Unit A pays $105 and Unit B pays $35.

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

What is a shared utility meter?

One meter that measures service to more than one place: two or more units, or a unit plus a common area such as a hallway, laundry room or the owner’s own space.

Can a shared meter bill be put in one tenant’s name?

Several of the rules we have read assume the landlord stays the customer on a shared meter. La Crosse, Wisconsin says the bill must stay in the landlord’s name for multi-unit properties on one meter, and Minnesota makes the landlord the customer of record in shared-metered buildings. Check your utility and state rules.

Can a landlord split a shared meter bill among tenants?

In many states, if the lease says so and the method follows state and local rules. Some states limit or prohibit it for certain utilities, so read your state’s guide. This is general information, not legal advice.

What does California require for shared gas or electric meters?

Civil Code § 1940.9 applies when a tenant’s gas or electric meter also serves areas outside the unit. The landlord discloses it before the lease and the parties agree in writing on how it is handled.

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.