Virginia utility billing for landlords: say it in the lease, keep fees to actual cost, keep records the tenant can inspect
Va. Code 55.1-1212 lets a Virginia landlord use submetering, energy allocation equipment or a ratio utility billing system if the lease clearly says so. Billing, set-up and move-out fees may cover only the actual administrative costs charged by a third-party billing provider and must be agreed in the lease. The late charge is capped at $5, and the owner must keep records that the tenant may inspect and copy.
What does Virginia allow a landlord to do?
Subsection B allows energy submetering equipment, energy allocation equipment, water and sewer submetering equipment, or a ratio utility billing system in a residential building if it is clearly stated in the rental agreement or lease. The definition of a ratio utility billing system is a formula for allocating, among the tenants, the actual or anticipated water, sewer, electrical, oil or natural gas bills that a third-party provider sends the building owner. Permitted formulas may be based on square footage, occupancy, number of bedrooms or another specific method agreed in the lease.
A "residential building" for this section means all the units served through the same utility-owned meter in an apartment building or house, or in a manufactured home park. Subsection I confirms that you may also simply include utilities in the rent.
Which fees can you add, and what is the late charge cap?
With submeters, subsection C allows monthly billing fees, account set-up fees or account move-out fees to cover the actual costs of administrative expenses and billing charged to the owner by a third-party provider of such services, if the lease agrees to them. Subsection D gives the same allowance for a RUBS program. The key words are actual costs charged by a third party. If you bill tenants yourself with no outside provider, the text does not describe a fee for your own time.
The owner may require a late charge of up to $5 if the tenant fails to pay when due, and the due date may not be less than 15 days after the bill was mailed or delivered. Under subsection D, that late charge counts as rent under the residential landlord and tenant chapter for a RUBS system in a multifamily dwelling.
How often must you bill?
For submeters, subsection C says the owner shall bill the tenant for electricity, oil, natural gas or water and sewer for the same billing period as the utility serving the building, unless the lease expressly provides otherwise. That ties your cycle to the utility's. If the city bills the building every two months, a monthly submeter bill is allowed only if the lease says so.
Example a made-up Richmond fourplex gets a $212.40 water bill covering the period March 1 to March 31. The lease allocates by occupancy: 2, 2, 1 and 3 people, 8 in all. The charges are $53.10, $53.10, $26.55 and $79.65, which add up to $212.40. The bill goes out for the same March period.
What records and testing duties apply?
Subsection F requires the owner to maintain adequate records about the equipment or RUBS system. A tenant may inspect and copy the records for the leased premises during reasonable business hours at a convenient location within or serving the building. The owner may charge a reasonable amount for copying, reflecting the actual cost of materials and labor.
A version of the section that takes effect July 1, 2027 adds detail: the records must include a description of how monthly energy and utility billing fees are calculated and a history of billing fee payments for each tenant over the tenancy or the past 12 months, whichever is shorter. If you start keeping that detail now, you will already be in line.
Subsection E covers energy allocation equipment: you must test it periodically, and on a tenant's request test it free, no more often than once in 24 months for the same tenant, with a written result within 10 working days. Energy submetering and allocation equipment must also meet standards set by the State Corporation Commission under 56-245.3.
How does a dispute get resolved?
Subsection G keeps the private right of action. Tenants and owners can sue for breach of the lease terms this section requires, to the same extent as for other lease terms in the chapter. The section does not set a separate complaint desk, so a tenant's first practical step is a written question to you. Answering it from your records is the cheapest way to end a dispute.
Subsection H lets you also allocate local government fees, such as stormwater, recycling, trash collection, elevator testing, fire or life safety testing or rental inspection program charges, by formula in the lease, plus actual administrative costs for the program, and these count as rent.
How DoorKeeping fits in Virginia
DoorKeeping keeps each Virginia 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. Keeping a calculation note with each month's bill gives you the records Virginia asks you to hold. 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.
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Questions
- Can a Virginia landlord use RUBS?
- Yes, if the lease or rental agreement clearly says so. Va. Code 55.1-1212 defines the system and allows formulas based on square footage, occupancy, bedrooms or another method in the lease.
- What is the maximum late charge on a Virginia utility bill?
- Up to $5, and the due date may not be less than 15 days after the bill was mailed or delivered.
- Can a tenant see how a Virginia landlord calculates utility charges?
- Yes. The tenant may inspect and copy the records for the leased premises during reasonable business hours, and the owner may charge the actual cost of copying.