Guide Allocation methods

Split a utility bill by square footage or by occupants

By MeterEase · Updated

By square footage: unit sq ft ÷ total sq ft × bill. By occupants: unit occupants ÷ total occupants × bill. Square footage fits utilities that follow space, like gas heat. Occupants fit utilities that follow people, like water. A 50/50 blend averages the two.

Worked example: one bill, three answers

Example numbers only. A three-unit building has a shared bill of $240.00. Unit 1A is a small unit with a family of three; 1B is a large unit with one person.

UnitSq ftOccupantsBy sq ftBy occupants50/50 blend
1A600320.00% · $48.0050.00% · $120.0035.00% · $84.00
1B1,200140.00% · $96.0016.67% · $40.0028.33% · $68.00
2A1,200240.00% · $96.0033.33% · $80.0036.67% · $88.00
Total3,0006$240.00$240.00$240.00

Unit 1A pays $48.00 by square footage and $120.00 by occupants for the same bill. The blend, 0.5 × 20.00% + 0.5 × 50.00% = 35.00%, lands at $84.00. Put your own units into the free RUBS calculator to compare methods side by side.

Which method for which utility

UtilityCommon choiceWhy
Water and sewerOccupants or 50/50 blendUse follows people: showers, laundry, dishes
Gas heatSquare footageHeating load follows space
Shared electricSquare footage or blend, where allowedLighting and HVAC follow space; appliances follow people
TrashEqual per unitUsually a flat service charge

Keep it consistent

Pick the method per utility, write it into the lease, and use it every month. Switching methods to suit a particular bill is the fastest way to lose tenants’ trust. Rules on allocation differ by state and city; seewhat to check before you bill.

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

How do you split a utility bill by square footage?

Add up the square footage of every unit. Each unit pays its square footage divided by that total, multiplied by the bill. A 600 sq ft unit in a 3,000 sq ft building pays 20% of the bill.

How do you split a utility bill by number of occupants?

Add up the occupants in every unit. Each unit pays its occupants divided by the total, multiplied by the bill. A three-person unit in a building with six occupants pays half.

Which is fairer, square footage or occupants?

It depends on the utility. Heating and cooling costs tend to follow space, so square footage fits gas heat. Water use tends to follow people, so occupants fit water and sewer. A 50/50 blend softens the extremes of either one.

How do I count occupants fairly?

Use the people named on the lease or a household count you update when people move in or out, and apply the same rule to every unit. Write down how you count children, guests and partial months.

Can I use bedrooms instead?

Yes. Bedrooms are a stand-in for occupants when you don’t track headcount. They are easy to verify but can overcharge a single person in a two-bedroom unit.

Related guides

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.