Utilities 101: How Can Renters Be Charged for Utilities?
Posted on April 11, 2023 by Charlie Krouse
Tags, Oregon Utilities 101, Energy, General Interest
As a renter, there are a few options for how you can be expected to handle your utility. Knowing your rights and responsibilities as a renter is important for making sure your utilities are handled properly!
In your rental agreement, your landlord must outline how you will be paying for utilities. There are two ways that you can be charged for utilities for your home:
- Your landlord pays the utilities for the whole building and charges you based on your unit size and/or how many people live in your apartment)
- You pay your for your home’s utility usage directly to the utility company
In addition to paying for utilities for your unit, your landlord can also charge you for common area utility fees. Common areas include any area that is shared between tenants (hallways, elevators, common rooms, etc.). This additional fee can be required regardless of if you pay your home’s utilities to your landlord or if you have an account directly with the utility company. Common area utility fees also must be outlined in your rental agreement.
You Pay the Utility Company Directly
In this form of billing, a tenant has an account directly with the utility company. Bills are charged by your actual usage each month. Here, the utility tracks how much your individual uses each month through a meter specific to your unit.
Upon signing the rental agreement, a tenant sets up their own utility bill directly with the utility company. If there is an outstanding bill from a previous tenant, you are not responsible for covering that amount.
Under Oregon law, if there is an outstanding bill the new tenant can pay the outstanding amount and deduct the amount from the rent. Or, the new tenant can terminate the rental agreement by giving the landlord actual notice 72 hours prior to the date of termination and the reason for the termination.
Even if you are paying the utility directly for your unit’s usage, you may also be responsible for common area utility fees for the building. The common area fee would be paid to your landlord, not the utility company.
Your Landlord Pays for the Whole Building, You Pay Your Landlord
In this type of billing, the utility usage is only tracked for the entire building, not each individual usage. The building owner is responsible for paying the utility company and charges each unit based on estimated usage. Your landlord cannot charge you more for your unit’s utilities than they are paying to the utility company.
Your landlord or property manager can calculate the utility charge for each unit based on a variety of criteria. This is usually calculated based on occupancy, square footage, or some combination of the two.
If your landlord is charging you for utilities, that needs to be included in your rental agreement. Landlords must also be able to provide a justification for how the charge is determined. If your landlord does not provide a copy of the utility provider’s bill, you are entitled to ask for that information.
For more information on how a landlord can break down utility costs, check out the CUB Blog - What’s the RUB?” Utility Billing and Renters’ Rights from May 2021.
Common Area Utility Fees
Regardless of whether you pay your unit’s utilities to your landlord or to the utility company, you may also be responsible for a common area utility fee. Here, the landlord or property manager charges tenants a fixed amount for utilities that are used in the common areas of the building, such as hallways, lobbies, and elevators.
Common area fees must be listed separately from any charges for your home’s utility usage. Any charges for utilities used outside of your unit must be clearly laid out in your rental agreement.
Can Landlords Change Utility Charges Mid-Lease?
Your rental agreement is a binding contract signed by you and your landlord. How your landlord outlines the utility charges in the rental agreement should be what you can expect for the length of your agreement. The only way the terms of a rental agreement can be changed is at the time of renewal or through an addendum that both you and your landlord sign. If your landlord attempts to change your rental agreement before your contract is up, you have the right to refuse to sign.
Changing the terms of your utility charges or common area fees could be changing the language of the rental agreement. If you are concerned that your landlord is violating the terms of your rental agreement by changing how utilities are charged, we recommend seeking legal advice from a qualified lawyer.
While we at CUB are always happy to discuss your utility bill and provide resources, your individual case may best be handled by an attorney. We recommend reaching out to the Oregon State Bar’s attorney referral service, which can put you in touch with an attorney that practices landlord/tenant law in your area. If you can’t afford an attorney, we also recommend reaching out to the Community Alliance of Tenants or the Legal Aid Services of Oregon.
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04/26/23 | 5 Comments | Utilities 101: How Can Renters Be Charged for Utilities?