Which states restrict RUBS and utility billing to tenants?
Many do, in different ways. Of five statutes read for this guide, Arizona and Virginia allow submetering or a ratio split if the lease discloses it, Massachusetts describes charging for water through qualifying submeters, North Carolina ties water charges to metered use, and Oregon lets a landlord pass on only what the provider billed. This is a map of five states, not a list of all fifty, so check yours.
How do five statutes compare?
| State | What the statute allows | Lease or notice | Fees and limits |
|---|---|---|---|
| Arizona | Submetering or a ratio utility billing system, using methods the statute lists | Lease lists the services charged and the method; 90 days notice to start mid-lease if the lease allows it | Provider charges plus actual administrative costs only |
| Virginia | Submetering, allocation equipment or a ratio system | Must be clearly stated in the lease | Admin charges at actual third-party cost if agreed in the lease; late charge up to $5 |
| Massachusetts | Water charges measured by a submeter that meets stated conditions | Written lease with plain-language detail; landlord certification to the board of health | Charge per unit may not exceed the calculated cost per unit |
| North Carolina | Water and sewer by metered consumption, with narrow exceptions | Commission procedure and application | At or below the supplier's unit rate plus an authorized administrative fee |
| Oregon | The charge the provider billed for the unit or a common area | Written rental agreement; allocation explained; common area described separately | Cost as billed; a 10 percent add-on only for cable or internet, with conditions |
The Virginia section shows two versions on the legislature's site, one effective until July 1, 2027 and one after. Read the version in effect on the date you bill.
What patterns show up across the states?
- Write it in the lease first. Four of the five statutes tie the charge to the written agreement.
- Pass on cost, do not earn from it. The statutes cap the charge at the provider's cost, and any administrative fee is either actual cost or a regulator's maximum.
- Show your work. Bills must carry details such as readings, billing dates, the method or a copy of the provider's bill.
- Keep records. Virginia lets a tenant inspect and copy records; North Carolina sets 12 months for water and 36 months for electric.
- Common areas need care. Oregon requires a common-area charge to be described separately, and North Carolina and Massachusetts bar charging a tenant for common-area water.
Which of the five is the strictest for a small building?
On the face of the text, Massachusetts and North Carolina leave the least room for a ratio split, because both tie charges to measured use. Massachusetts adds conditions on the unit and the equipment before any charge, including a licensed plumber's work, water conservation devices and certification to a local agency. Oregon is lenient on method but strict on arithmetic: the charge must equal what the provider billed, and a landlord who fails the billing rules may owe the tenant one month's rent or twice the amount wrongfully charged, whichever is greater.
Arizona and Virginia are the most open to a ratio split, with disclosure as the price of entry.
What if your state is not on the list?
Do three things. Search your state's legislature site for the words submetering, ratio utility billing and utility charge. Check your public utility commission's pages for landlord billing rules, since some states regulate it there rather than in the landlord-tenant act. Then ask a local attorney or a landlord association, because city rules and court decisions can matter as much as the statute. A plain flat rent with utilities included needs none of this and is always available.
Where DoorKeeping helps
DoorKeeping does not tell you whether a method is allowed in your state and does not bill tenants for utilities. It keeps the bill, the lease clause and your worksheet together in documents, and records what tenants reimburse in the property's own books. 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
- N.C. Gen. Stat. 62-110(g) and (h), water, sewer and electric charges by lessors (North Carolina General Assembly), read Oct 31, 2026
- ORS 90.315, Utility or service payments; additional charges (Oregon Legislature, Chapter 90), read Oct 31, 2026
Questions
- Which states ban RUBS?
- This guide covers five states and does not claim a full list. Massachusetts and North Carolina tie water charges to measured use; confirm your own state's statute and utility commission rules.
- Do I need to tell tenants about RUBS before they sign?
- In the statutes read here, yes: the lease must disclose or state the method, and Oregon requires disclosure of any utility the tenant pays directly that benefits others.
- Can I charge more than the utility charged me?
- Generally no. The statutes read here limit the charge to the provider's cost plus, in some states, an actual-cost or regulator-approved administrative fee.