Lease clauses › Utilities clause
Utilities clause
A utilities clause in a lease assigns responsibility for each service — electricity, water, gas, internet, trash and sewer — to either the landlord or the tenant. Without it, default state law applies, and disputes over unpaid bills at move-out are one of the most common reasons security deposits are withheld in 2026.
Standard US allocation
| Utility | Usually paid by | Notes |
|---|---|---|
| Electricity | Tenant | Separate meter per unit |
| Natural gas | Tenant | Where separately metered |
| Water & sewer | Landlord | Often one meter for the building |
| Trash / recycling | Landlord | Municipal fee tied to the property |
| Internet / cable | Tenant | Tenant picks the provider |
| HOA / CAM fees | Landlord | Commercial leases may shift to tenant |
Example wording
India practice
In Indian residential tenancy — governed by the Model Tenancy Act 2021 in states that have adopted it, and state rent-control laws elsewhere — the tenant typically pays electricity and water on meter reading, while the landlord pays property tax and society maintenance. In Maharashtra and Karnataka it is common for leave-and-license agreements to explicitly list sub-meter readings at handover to avoid disputes.
Common mistakes
- Leaving utilities in the landlord's name after move-in — bills pile up and are charged against the deposit.
- Not capping "included" utilities. A flat $75/mo electricity allowance protects the landlord in extreme-use months.
- Forgetting to name who handles seasonal services (lawn, snow removal, pest control) — these aren't utilities but often share the same dispute.
FAQs
Who pays utilities in a rental — landlord or tenant?
It depends on what the lease says. In the US most single-family and apartment leases make the tenant responsible for electricity, gas and internet, while the landlord covers water, sewer and trash. In multi-unit buildings without separate meters the landlord often bills a flat utility fee.
Can a landlord shut off utilities to force a tenant out?
No. Every US state treats utility shut-off as an illegal self-help eviction. California Civil Code § 789.3, Texas Property Code § 92.008 and similar statutes expose the landlord to actual damages, statutory penalties and attorney fees.
Who pays utilities under Indian rental agreements?
In India the standard practice is that the tenant pays electricity, water, gas and internet on actual-consumption basis, while the landlord pays the municipal property tax and society maintenance charges. The lease should specify meter readings at move-in and move-out.
Related: Maintenance clause · Security deposit clause · Generate a lease