How to charge electricity to tenants fairly

Electricity is a common cause of arguments between landlords and tenants. A clear method, written down at the start, avoids most of them.

If each tenant has a separate meter

The tenant pays the bill for that meter directly, or you pass on the bill amount. This is the simplest case.

If there is one main meter and sub-meters

1. Note the sub-meter reading at the start and at the end of the month.
2. Subtract to find the units used.
3. Multiply the units by the agreed rate per unit.
4. Add the tenant's share of any shared charges, if you agreed to that.

Fair practice

• Agree the rate in writing in the rent agreement.
• Take the reading at move-in and keep it on record.
• Let the tenant see and confirm each month's reading.
• Keep a copy of the electricity bill so the rate can be checked.
• Rules about what a landlord may charge vary by state, so check your local regulations.

Do it in the app

In RentCure, the tenant sends the meter reading and the landlord approves it or rejects it with a reason. Both of you then see the same record. See the room rent management app.

This guide is general information, not legal advice.