Guide Electric

How to split one electric bill between tenants

By MeterEase · Updated

When two units share one electric meter, the usual choices are a separate meter or submeter, a formula split under the lease, or including electricity in rent. Electricity is regulated more closely than water in several states, so check your state before you split it by formula.

Why electric is different

Electric use swings with things one household controls: space heaters, window or mini-split air conditioners, a car charger in the garage. That makes a formula split feel less fair than it does for water, and it is part of why some states and utilities treat electric resale and allocation more strictly.

What some states say about electricity

  • Minnesota: apportioning electricity is prohibited in shared-metered residential buildings (Minn. Stat. § 504B.216, subd. 5(a)).
  • New York: residential electric submetering needs authorization from the Public Service Commission (16 NYCRR § 96.2).
  • Texas: for apartment houses (two or more units), the PUC rule on non-submetered master-metered electricity says the lease gives a clear written description of the allocation method, which is based on square footage (including heated or air-conditioned common areas) or submetered use; the method changes only after 90 days’ notice; and the lease states the unit’s average monthly bill for the prior calendar year (16 TAC § 25.141).
  • 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 (Civil Code § 1940.9).
  • Arizona and Virginia: both list electricity among the utilities a landlord may allocate by ratio billing, with conditions (A.R.S. § 33-1314.01; Va. Code § 55.1-1212).
  • Delaware: consumption-based utilities, including electricity, generally need a separate meter before they are billed separately (25 Del. C. § 5312(a)).

More states are in our state guides, and where RUBS is limited collects the stricter ones.

Methods that work for electricity

  • Separate meters. Each unit has its own account with the utility. Ask the utility and a licensed electrician what it takes.
  • Submeter. A meter per unit that you read and bill from, where your state allows it.
  • Square footage. A common formula for electricity because heating and cooling track floor area.
  • Included in rent, with a cap. Some landlords include electricity up to a set amount and bill the excess by formula, where the lease and local rules allow.

Example with made-up numbers

A duplex shares one electric meter. The bill is $240. Unit A is 900 sq ft and Unit B is 600 sq ft, 1,500 sq ft in total. Unit A pays 900 ÷ 1,500 × $240 = $144 and Unit B pays 600 ÷ 1,500 × $240 = $96. If a garage light and the owner’s shop run on the same meter, take an estimate for those out first.

Try your own numbers in the RUBS calculator.

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

Can a landlord split one electric bill between two tenants?

In some states, if the lease says so and the method follows state and utility rules. Electricity is more often regulated than water: Minnesota prohibits apportioning it in shared-metered buildings, and New York requires approval for residential electric submetering. This is general information, not legal advice.

What is the fairest way to split an electric bill?

A submeter on each unit bills actual use. Without one, square footage is a common formula for electricity because heating and cooling track floor area. Whatever you use, put it in the lease and show tenants the math.

Can tenants just split the bill between themselves?

Putting one tenant in charge of collecting from another tends to cause disputes, and some rules expect the landlord to be the customer on a shared meter. Keeping the bill in your name and billing each tenant a share, or including it in rent, is more common.

Does Texas allow allocating electricity in apartments?

The Texas PUC rule for apartment houses (16 TAC § 25.141) covers non-submetered master-metered electricity: the lease describes the allocation method, which is based on square footage or submetered use, and states last year’s average monthly bill for the unit.

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.