A landlord-tenant utility agreement records who is responsible for which services and how they are paid for. It is needed whenever the answer is not simply that the tenant holds every account, which is most of the time in multi-unit property, in any let with a shared supply, and in any inclusive-rent arrangement. Four things have to be settled or the argument arrives with the first large bill.
Which utilities, named one by one
Water, sewer, refuse, gas, electricity, heating and hot water where communal, internet, and any service charge item. For each, say who holds the account and who pays. Writing utilities are the tenant's responsibility is not an allocation, because it does not say what happens to the communal hallway lighting or the water that is not separately metered.
Whose name the account is in, and the consequence
The account holder is the one the supplier pursues. If accounts stay in the landlord's name and are recharged, the landlord carries the credit risk and the debt. If they transfer to the tenant, the landlord needs proof of the transfer date and a final reading, or a bill for the tenant's usage arrives months later. Record the readings and the dates at both ends of the tenancy.
Apportionment of a shared supply, with its method
Where a supply serves more than one unit, say how it is divided: by submeter reading, by floor area, by occupancy, or by a fixed share. State the method and show the working each time you bill. Several states regulate submetering and what may be added when reselling a utility, and a few require specific disclosures, so check the state rule before designing the recharge.
The end of the tenancy
Final readings on the day possession changes, photographed, with the date. Who notifies the suppliers. What happens to a final bill that arrives after the deposit has been returned, which is the scenario that produces most utility disputes and the one an agreement almost never addresses. Decide it in advance, in writing, and hold back nothing from the deposit that the agreement does not permit.
Questions people ask about landlord-tenant utility agreement template
Can I recharge utilities to a tenant?
Usually, with a stated method. Several states regulate submetering and what may be added when reselling a utility, so check the state rule first.
Whose name should the account be in?
Whoever you want the supplier to pursue. Tenant accounts remove your credit risk; landlord accounts remove the transfer admin and add it.
What about a final bill after the deposit is returned?
Decide it in the agreement. Without a term, a late bill is usually the landlord's problem and the deposit is already gone.