Who pays the utilities in a rental: landlord or tenant?
The lease decides. Either the tenant puts electric, gas, water and trash in their own name and pays them, or the landlord keeps them and builds the cost into the rent. What the lease cannot do is excuse the landlord from providing the basics a rental must have, such as running water and heat, which many states require by law.
How are utilities usually split?
| Utility | Single-family home or duplex | Apartment building |
|---|---|---|
| Electric | Tenant, in their own name. | Tenant if each unit has its own meter; landlord for hallways and shared areas. |
| Gas | Tenant if a separate meter. | Often the landlord if one boiler serves the building. |
| Water and sewer | Often the tenant, sometimes the landlord. | Commonly the landlord, sometimes billed back by a formula. |
| Trash | City service billed to owner or tenant. | Landlord. |
| Internet and cable | Tenant. | Tenant, unless the building supplies it. |
This is the common pattern, not a rule. If a utility is on one meter for several units, the landlord pays it and decides whether to include it in rent or divide it. The utility billing guide covers dividing a shared water bill.
What should the lease say?
- A line for each utility naming who pays: tenant, landlord or split.
- For tenant-paid utilities, a deadline to move the account into their name (usually move-in day) and proof of that.
- A duty to keep service on for the whole tenancy, so pipes do not freeze and the unit stays safe.
- For split bills, the exact formula and when the tenant gets the bill.
- What happens if the tenant lets service lapse: a notice, and the owner's right to restore it and charge for it only where the lease and state law allow.
Keep the wording the same for every unit of the same type. Different terms for different people invite a fair housing complaint.
What must the landlord provide whatever the lease says?
Many states treat basic services as part of a habitable home. California's Civil Code 1941.1, for example, lists working plumbing with hot and cold running water, heating, and gas and electrical systems among the conditions a dwelling must meet. Laws on this vary by state, and some allow a tenant to pay for a utility if the lease says so while the landlord stays responsible for the fixtures and systems themselves.
A landlord also cannot shut off a tenant's utilities to force them out. That is a separate and serious violation in most states, covered in the shut-off guide.
What about utilities in a vacant unit?
Keep electric on between tenants: you need light for cleaning and showings, power for an inspection and heat to protect pipes in cold months. Move the account into your name on the day the old tenant's account closes, then out of it on the day the new tenant's lease starts. Missing that handoff is the usual way owners end up paying a bill they did not run up. A winterizing checklist applies if you must shut off water.
Example a made-up tenant moves out on the 30th and the new tenant moves in on the 8th. The owner pays eight days of electric, cleaning and light for the turn. Tracking those days as a turnover cost shows the true cost of a vacancy.
How DoorKeeping handles it
Record utility bills as vendor bills that the AI reads and codes to the right expense line, per property, so each LLC's books show what the building really costs to run. Utility notes and the lease sit in documents on each unit, and you can ask Claude or ChatGPT what each property spent on utilities this year. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it.
Sources
- California Civil Code 1941.1 (conditions that make a dwelling untenantable), read Oct 30, 2026
- IRS Publication 527: Residential Rental Property, read Oct 30, 2026
- DoorKeeping: Connect Claude or ChatGPT (steps and tools list), read Oct 30, 2026
Questions
- Can I include utilities in the rent?
- Yes. State it in the lease. The rent is then higher, and you carry the risk of a heavy-use tenant.
- Can I charge a tenant for the common-area electric?
- Not unless the lease and state law allow it. Common-area costs are normally the owner's.
- Are utilities deductible?
- Utilities appear in the IRS list of common rental expenses in Publication 527. Ask your tax preparer about your case.
- What if a tenant does not put the account in their name?
- Send a written notice with a short deadline. If service never starts, the lease breach is the issue to resolve, not a reason to cut off anything yourself.