This handbook explains common utility responsibility arrangements for multifamily properties.

Utility responsibility depends on whether the property has separate utility meters.

🔌 Properties with Separate Utility Meters

For single-family homes or multifamily properties with separate utility meters:

• • Residents are responsible for transferring utility accounts into their names before the lease start date.
  • Utility service should begin on the first day of the lease.
  • Residents are responsible for all utility charges during their tenancy.

This is the preferred setup because utility responsibility is clearly separated between units.

🏘️ Multifamily Properties with Shared Utility Meters

For multi-unit properties with a shared utility meter, the landlord may recover utility costs by including electricity charges in the tenant’s rent. Rent inclusion is permitted if the landlord does not separately measure or bill the tenant based on individual usage.

• • It is recommended to sign a Utility Sharing Addendum with tenants to clarify cost-sharing responsibilities.
  • Utility costs can be divided based on methods such as square footage, equal split, or occupancy-based calculations.

📋 Utility Cost Sharing

For shared utilities, the lease agreement or Utility Sharing Addendum should clearly explain how costs are divided between Residents.

Common allocation methods include:

• • Equal split
  • Occupancy-based split
  • Bedroom-count split
  • Square-footage split

ConnectAll strongly recommends using a signed Utility Sharing Addendum for all shared utility arrangements.

💵 Utilities Included in Rent

In some multifamily properties, Owners may choose to include utilities in the monthly rent instead of separately billing Residents.

This is common when utility usage cannot be separately measured.

Examples may include:

• • Heat included
  • Water included
  • Electricity included
  • Trash included