How Is Water Usage Measured and Billed in Rental Apartments?

Water is an essential utility in every rental apartment, but many tenants don’t know how water consumption is calculated — or who pays for it. Depending on the building’s setup and local regulations, water billing can vary widely from one property to another. Here’s how it typically works.

1. Master Meter vs. Individual Meter

In many older apartment buildings, especially in cities like New York, NY (ZIP 10025) or Chicago, IL (ZIP 60618), water is measured through a master meter that tracks total usage for the entire building. In this case, landlords either pay the bill themselves or divide the cost among all units — often based on square footage or number of occupants.

In contrast, newer properties — common in suburban areas of Maricopa County, AZ or Orange County, CA — are more likely to have individual meters or submeters, allowing each tenant to be billed based on their actual consumption.

2. Billing Methods

There are several common billing models used by landlords and property managers:

• Flat Rate: A fixed monthly charge regardless of usage — typically seen in master-metered buildings.
• Ratio Utility Billing System (RUBS): Costs are divided among tenants based on factors like unit size or number of residents, without individual metering.
• Submetered Billing: Tenants pay for the exact amount of water they use, similar to how electricity is billed.

In some states, like Texas and Florida, RUBS billing is common in multi-unit buildings, while states like California are pushing for mandatory submeters in new constructions.

3. Who Is Legally Responsible for the Bill?

The lease agreement usually specifies who pays for water. In most cases:

• If the unit is individually metered, the tenant is directly billed by the water utility or via the landlord.
• If it’s master-metered, the landlord pays the main bill and may or may not pass it on to tenants.

Some jurisdictions regulate whether landlords can charge tenants for water. For example, in San Francisco, CA, passing on water charges in rent-controlled units is often restricted, while in Charlotte, NC, utility billing is more flexible.

4. How to Track and Reduce Consumption

Tenants concerned about cost or conservation can take several steps:

• Ask if the apartment has a submeter or RUBS billing method
• Monitor monthly utility bills for abnormal spikes
• Report leaks immediately — dripping faucets and running toilets waste hundreds of gallons
• Install low-flow showerheads (if permitted by the lease)

5. Disputes and Billing Transparency

Disputes can arise when tenants feel they’re being overcharged, especially under RUBS. Many states — including Colorado and Oregon — require landlords to disclose billing methods, provide clear statements, and comply with utility laws. Tenants should always request billing breakdowns if the charges seem unclear or inconsistent.

In summary, water billing depends on building infrastructure, state law, and lease terms. Understanding how usage is measured — and how your portion is calculated — can help avoid confusion and keep utility costs in check.