Do Tenants Pay Water Bill? A Comprehensive Guide

Paying utility bills can be a complicated issue for tenants and landlords alike. With water being an essential utility, who is responsible for paying the water bill is an important question that needs clear answering to avoid potential conflicts.

Overview

In most states, landlords are not required by law to pay for water utilities. However, many landlords choose to put the water bill in their name and pass on the cost to tenants as part of the rent or through separate utility billing. This arrangement should be clearly laid out in the lease agreement so there are no misunderstandings about who is responsible for water costs.

While practices vary there are some general guidelines on handling water bills

• In single-family rentals the lease should specify if the tenant or landlord pays the water bill. This avoids confusion.

• In multi-family units, water bills are often paid by the landlord or property manager and divided among tenants. This can be done through submetering or allocating based on factors like square footage.

• If not specified in the lease, it is generally assumed the landlord pays water bills. But this can vary by state and locality.

• Landlords cannot transfer utility responsibilities to the tenant without consent after a lease is signed Proper notice is required.

Ultimately, the lease agreement determines legal obligations. But there can still be gray areas that lead to problems. Clear communication upfront between landlords and tenants is key.

Below is a more in-depth look at approaches to handling water bills along with legal considerations.

Water Bill Responsibilities in Rental Agreements

Lease agreements should clearly spell out if the tenant or landlord is responsible for paying water bills. Absent language assigning responsibility, issues can arise.

Here are some best practices for rental agreements:

• If the tenant pays the water bill, the lease should explicitly state this obligation. Terms like “tenant shall pay all utilities” would cover water.

• If water is included in rent, language could be “water expenses paid by landlord” or “water included in rent.”

• Detail not just responsibility for payment but also for establishing service, terminating service, and keeping the account current.

• If landlord bills back utilities through submetering or allocation, the method should be described in the lease. Disclosure of any associated fees is required in some states.

• Ensure billing and payment arrangements align with local utility provider policies.

Without right-sizing lease terms, problems could emerge. A landlord assuming they can just pass on a water bill after the fact would likely violate the lease. But the tenant also can’t stop paying an already defined obligation unless modified in writing.

Clear lease terms plus good documentation of any changes mutually agreed to regarding utilities are the best practices for avoiding issues.

Landlord and Tenant Responsibilities

If not spelled out in the lease, laws will shape landlord and tenant responsibilities for water bills. But statutes vary significantly across states and local jurisdictions. Some key considerations:

Landlord obligations

• In most areas, if lease silent, landlord assumed responsible for water.

• Landlords must provide safe, potable water meeting all health codes.

• Cannot shut off critical utilities like water while tenant occupies property.

• Must disclose submetering, allocation fees, and billing practices upfront.

Tenant obligations

• Usually required to pay water if stipulated in lease.

• Must allow access for meter readers and repairs facilitating water service.

• Liable if tamper with submeters or damage utility equipment.

• Must give proper notice to vacate and pay final bill if in their name.

If landlord fails to pay water bills leading to shutoff, tenants may have options like repair and deduct or withholding rent. But requirements vary greatly by jurisdiction.

No matter what the lease says, landlords maintain some legal duty to ensure livable conditions, which necessitates functional plumbing and water supply. But the exact obligations differ across states and cities.

Water Submetering in Multi-Family Properties

In properties with multiple rental units, water service is usually shared. There are a couple approaches to dividing costs:

Master meter

The property has one main meter tracking total water usage. The landlord pays the bill and divides it among tenants based on factors like:

• Per unit

• Square footage

• Number of occupants

• Previous usage

Submetering

Each unit has an individual water meter. Tenants pay for their actual usage, with the landlord doing billing and collection. A fee can cover metering and administrative costs.

Submetering is preferred by many landlords for accountability. Tenants also may favor only paying for what they use. However, state laws vary on whether submetering is mandatory, optional, or prohibited.

If not well executed, submetering can lead to unfair overbilling by landlords. Proper disclosure and tenant rights are essential.

When Tenants Pay Water Bills

If the tenant assumes responsibility for water bills in the lease, there are some important implications:

• Tenant must establish water service in their name with the utility provider, typically before move-in.

• Deposits or connection fees are the tenant’s responsibility. Landlords cannot pass these on.

• Tenant must notify landlord in advance if disconnecting service, such as when moving out.

• Tenant is liable for bills covering their entire lease term, even if vacating early.

• Tenant must provide proof of final bill payment to avoid fees.

• Landlord can only charge actual costs. They cannot mark up bills.

• Tenant has rights related to fair billing, disputes, and payment arrangements.

While simplified for landlords, putting water bills fully in the tenant’s name does remove their control over consumption and potential problems arising. Clear lease terms and rules can help mitigate issues.

Shared Water Meters in Multi-Tenant Buildings

In some smaller multi-family buildings, there may be just one shared water meter covering the entire property. This creates a challenge for allocating bills to individual tenants.

In this situation, the lease should explain how water costs will be divided up. Common approaches include:

• Dividing equally among all units.

• Setting a flat rate per unit.

• Basing on unit size (larger units pay more).

• Rotating each billing period.

• Assessing extra charges for high use units.

• Splitting based on occupancy.

The approach should be unambiguously spelled out and ideally tied to some usage data, even if estimating. Tenants are entitled to understand the rationale and methodology for their portion of shared utility bills.

Water Bill Disputes Between Landlords and Tenants

Despite best efforts, disputes can arise over water bills. This may happen:

• Mid-lease if responsibility is unclear based on lease terms.

• If landlord fails to pay bill leading to shutoff.

• If tenants are overcharged for submetered or allocated water.

• If tenant doesn’t pay final bill when vacating.

• If shared meter costs are allocated unfairly.

To avoid conflicts, keep documentation like leases and utility bills on hand. Seek a resolution directly with the other party first if possible. Landlord-tenant laws or housing authorities may also provide guidance on the proper resolution of water bill disagreements and establish who has rightful responsibility.

Water Bills When Moving Out

Handling final water bills needs special attention when tenants move out:

• Tenant should notify utility provider in advance of move out date to schedule final meter reading.

• If landlord pays water, tenant should inform them of move out plans and coordinate final bill.

• Tenant must pay any outstanding water charges in their name up through move out date.

• With submetering, final bill may require actual reading, estimate, or prorating.

• Tenant should get documentation showing a zero balance on water account.

• Landlords can deduct unpaid bills or estimates from the security deposit if water is tenant’s responsibility.

Both parties should communicate clearly to settle the water account properly when tenancy ends. Otherwise security deposits or collections can turn into needless disputes.

Options When Landlord Fails to Pay Water Bill

Tenants have some options if their landlord fails to pay the water bill, leading to service interruption:

• Pay the bill. Some states allow tenants collectively or individually to pay overdue utility bills and deduct it from rent.

• Repair and deduct. Tenants can pay for repairs needed to restore water service and deduct costs from rent, within limits.

• Withhold rent. Tenants may be justified withholding a portion of the rent proportional to the lapse in water service.

• Break the lease. Interrupted water may be grounds for lease termination without full penalties.

• Rent abatement. Tenants can place rent in escrow until water service is restored.

• Alternative housing. Tenants may be able to move temporarily and not pay rent for days without water.

• Damages. Tenants may recover damages, such as hotel costs, from the landlord for lapses in critical utilities.

Remedies depend on state and local law. Proper documentation and prompt notice to the landlord is advisable when exercising these options. Consult a local tenants rights organization for guidance on applicability. Lan