How do you show utility charges in a lease?
List every utility, say who holds the account, and if tenants reimburse you for any, name the method, the fee (if any), the billing timing and the due date. Several state statutes make the lease the legal source for a utility charge, so a charge that is not described in the lease may not be collectable.
Why does the lease clause matter so much?
In the statutes read for this series, the lease is where the right to charge begins. Arizona says the rental agreement must list the utility services charged separately and state the amount of any administrative fee. Virginia allows submetering or a ratio system only if clearly stated in the lease. Oregon allows a landlord to require payment of a utility charge only if a written rental agreement provides for it. A clause that is vague or missing weakens your position in each.
What belongs in the clause?
| Item | What to state |
|---|---|
| Utilities covered | Electric, gas, water, sewer, trash, internet, each marked tenant account, landlord pays, or reimbursed to landlord |
| Account holder | Who must put the account in their name, and by which date before move-in |
| Method | Meter reading, or the exact formula and the factor (area, occupants, bedrooms) |
| Common areas | Whether any common-area cost is billed, and how it is described apart from the unit's use |
| Fees | The amount of any administrative or billing fee, and any late fee, written as a number |
| Timing | When bills are sent, how a tenant can see the utility bill, and when payment is due |
| Changes | Whether the method can change mid-lease and how much notice you will give |
| Disputes | Who to write to, and how long you take to answer |
What does a sample clause look like?
This is sample wording to adapt with a local attorney, not a clause that fits every state.
Sample only. Utilities. Landlord pays the building's water and sewer. Tenant pays for electric and gas directly to the utility and must put the account in Tenant's name before the lease start date. Landlord will bill Tenant for the unit's share of the building's water and sewer bill, calculated by [method: occupants / livable square feet] as shown on each bill. The share equals the amount the utility billed Landlord, divided by that method, with no added charge except an administrative fee of $[amount] per month. Landlord will send each bill within [30] days of the utility's bill, show the utility's total, the method, the Tenant's factor and the dates covered, and attach or offer a copy of the utility's bill. Payment is due [30] days after delivery. Tenant may write to Landlord about a bill, and Landlord will answer in writing within [10] days. Common-area charges are not included in Tenant's bill.
Two things to notice. Every blank is a number you set, not a vague phrase. And the clause promises only things you will actually do.
Which state rules should shape the wording?
- Arizona: describe the ratio method specifically; to start billing mid-lease, the lease must provide for it and the landlord must give at least 90 days' notice.
- Oregon: a utility charge for a common area must be described in the agreement separately and distinctly from the charge for the unit; the landlord must explain how the provider assesses the charge and how it is allocated; and any utility the tenant pays directly that benefits the landlord or other tenants must be disclosed in writing at or before the start of the tenancy.
- Virginia: the lease must agree to any billing, set-up or move-out fees, and a late charge may be up to $5 under the version read.
- Massachusetts: for submetered water, the lease must clearly provide for the charge and describe the arrangement in plain language.
See which states restrict utility billing for the full comparison.
What mistakes make a clause fail?
- Saying tenant pays a share of utilities with no method or fee.
- Adding a flat monthly utility fee that is not tied to the provider's bill.
- Leaving common-area cost inside the unit's bill in a state that bars it.
- Promising to bill on a date you will not keep.
- Changing the method by email in the middle of a lease.
Where DoorKeeping fits
DoorKeeping's e-signed lease flow stores the signed lease with the unit, and you can add your own utility clause to it. The AI reads each utility bill and codes it to that property's books, so the bill and the clause sit together. DoorKeeping does not draft a state-compliant utility clause for you or bill tenants for utilities. Have a local attorney review the wording. This is general information, not legal advice. Statutes change, so read the current text and ask a local attorney before you bill a tenant.
Sources
- A.R.S. 33-1314.01, Utility charges; submetering; ratio utility billing; allocation (Arizona Legislature), read Oct 31, 2026
- Va. Code 55.1-1212, Energy submetering, sewer and water submetering equipment, and ratio utility billing systems (Virginia Law), read Oct 31, 2026
- G.L. c.186, section 22, Definitions; submeter installation; testing; water use charges (Massachusetts Legislature), read Oct 31, 2026
- ORS 90.315, Utility or service payments; additional charges (Oregon Legislature, Chapter 90), read Oct 31, 2026
Questions
- Does a lease have to list utilities?
- Not every state says so, but listing them is the clearest protection. Arizona and Oregon require specific disclosures when you charge tenants for a utility.
- Can I add a utility charge after the lease starts?
- Only if the lease allows it and your state permits it. Arizona requires that the rental agreement provide for it and at least 90 days' notice.
- Should utilities be in the main lease or an addendum?
- Either works if the tenant signs it. Many owners use an addendum so the utility terms are easy to find.