Oregon utility charges to tenants: written lease, a bill within 30 days, provider cost only and a steep penalty
ORS 90.315 lets an Oregon landlord require a tenant to pay a utility or service charge billed to the landlord only if the written rental agreement says so. The landlord must bill within 30 days of the provider's bill, explain how the charge is allocated among tenants, and charge only the provider's cost. A landlord who breaks these rules owes the tenant one month's rent or twice the amount wrongly charged, whichever is greater.
Which utilities and services does ORS 90.315 cover?
The definition of utility or service is broad: electricity, natural or propane gas, oil, water, hot water, heat, air conditioning, cable television, satellite or other video subscription, internet, sewer service (which includes stormwater), public services and garbage collection. The section does not use the words submeter or ratio billing, and it does not require meters. It sets rules for any charge passed through to a tenant, however you divide it.
Two cases are covered. The first is a utility or service provided directly to the tenant's unit. The second is a common area available to the tenant as part of the tenancy. A common area charge must be described in the lease separately and distinctly from the charge for the tenant's unit. Manufactured dwelling tenancies under ORS 90.505 to 90.850 are excluded.
What must the lease or disclosure say?
Subsection 4 starts with the lease: only if a written rental agreement so provides may a landlord require the tenant to pay the charge. The landlord must provide, in the lease or in a bill, an explanation of how the provider assesses the charge and how it is allocated among tenants when the provider's bill covers several tenants.
Subsection 2 covers a different case. If a tenant pays a utility directly to the provider and that utility benefits the landlord or other tenants, because it is delivered to any area other than the tenant's own unit, the landlord must disclose it in writing at or before the start of the tenancy. A knowing failure to disclose lets the tenant recover twice the actual damages or one month's rent, whichever is greater. A shared hallway light on a tenant's meter is the classic example.
How must you bill, and what can you charge?
- Bill in writing within 30 days after you receive the provider's bill.
- If the bill also shows rent, state the rent and the utility charge separately and distinctly.
- Include a copy of the provider's bill, or state that the tenant may inspect it at a reasonable time and place and get a copy for the reasonable cost of copying.
- Charge no more than the cost billed to you by the provider. The only exception is video and internet service, where an added amount up to 10 percent is allowed if it is described separately and the total stays below what the tenant would pay the provider directly.
You may make the bill due on delivery, but a payment counts as timely if made by a date stated on the bill that is at least 30 days after delivery. You may deliver the bill electronically if the lease says so. There is no administrative fee for water, sewer, gas or electricity: the charge may include only the provider's cost.
Example a made-up Portland duplex gets a $164.00 sewer and water bill on the 4th. The lease splits it evenly between two units. The landlord sends each tenant a bill for $82.00 on the 20th, with a copy of the provider's bill, stating that the due date is the 25th of next month. The bill went out inside 30 days and the due date is more than 30 days after delivery.
What happens if a tenant does not pay, and if you slip?
A utility or service charge is not rent or a fee. Nonpayment is not grounds for a nonpayment of rent termination under ORS 90.394. It is grounds for a termination for cause under ORS 90.392. That is a different notice, so do not put the utility amount on a rent demand.
If a landlord fails to comply with the lease, billing, charge or notice rules, the tenant may recover one month's periodic rent or twice the amount wrongfully charged, whichever is greater. A landlord also may not hold a tenant liable for a public service charge billed to a previous tenant, and needs 60 days written notice to add a newly adopted public service charge to a month-to-month agreement.
How DoorKeeping fits in Oregon
DoorKeeping keeps each Oregon utility bill, your split worksheet and the lease clause together in the unit's documents, and records what each tenant reimburses in the property's own books. The provider's bill, the date you received it and the date you billed the tenant can be filed together, which shows the 30-day clock was met. Anything involving money waits for your one-tap approval. This is general information, not legal advice. Check the current statute, any utility commission rule and your lease before you bill a tenant.
Sources
Questions
- Can an Oregon landlord bill tenants for water?
- Yes, if the written rental agreement provides for it. The landlord bills within 30 days of the provider's bill and charges only the provider's cost.
- Can an Oregon landlord add an administrative fee to a utility charge?
- Not for water, sewer, gas or electricity. The charge may include only the cost billed by the provider. Video and internet service allow an added amount up to 10 percent under set conditions.
- What is the penalty if an Oregon landlord bills a utility incorrectly?
- The tenant may recover one month's periodic rent or twice the amount wrongfully charged, whichever is greater.