Ratio Utility Billing Systems

The bill authorizes landlords to use a ratio utility billing system to allocate utility charges for a residential premises to individual tenants. The landlord may charge tenants a utility bill using a ratio utility billing system if the landlord meets certain requirements, such as:

• The aggregate amount billed to all tenants does not exceed the amount charged by the utility for service to the entire residential premises;
• The landlord does not apply a fee or other charge to the tenant in addition to the actual charges from the utility provider;
• The utility costs for common areas or shared facilities are excluded from the charges to the tenant; and
• The landlord clearly discloses the method of allocation for the dwelling unit in the tenant's rental agreement.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)