Utility Bills and Tenant Rights

It is essential for landlords and tenants to have a clear understanding of their respective rights and obligations for utility charges at the rental unit. Communication and precise documentation about utility responsibilities are crucial for a successful landlord-tenant relationship. 

The Lease Agreement Controls

The lease agreement should clearly outline how the parties have allocated responsibility for utility charges.  Specifically, the lease agreement should identify who is responsible for paying utilities, the amount, and the consequences of non payment.  This ensures tenants are fully aware of their responsibilities towards utility payments and protects them from unexpected liabilities.

Responsibility for Unpaid Utility Bills

Legally, unpaid utility bills are the responsibility of whoever’s name is on the bills. If your tenants pay you directly for utilities and you pay the bills, you would be responsible for covering these charges. Landlords can charge tenants for such bills if the lease agreement permits but cannot impose unreasonable utility rates that surpass the actual cost of the utilities provided.

Water Bills/Water Usage

The landlord can ultimately be held responsible for unpaid water bills for rental units in California regardless of whose name is on the bill.  Generally, landlords cannot restrict how much water a tenant uses. In California, however, there are exceptional cases when landlords may ask tenants to use less water. If you can, you should audit how much each unit uses and let each occupant know if they need to reduce consumption to meet the state standards.

Can A Landlord Shut Off Utilities?

Civil Code section 789.3. prohibits a landlord from directly or indirectly causing the interruption or termination of any utility service furnished the tenant. This includes (without limitation) water, heat, light, electricity, gas, telephone, elevator, or refrigeration, whether or not the utility service is under the control of the landlord. If the landlord violates Civil Code 789.3 he will be potentially liable for actual damages, attorney’s fees and penalties of up to $100 per day during the violation period.  The landlord would also be subject to liability for constructive eviction.  The bottom line is a landlord should not interfere with tenant utilities under any circumstances without a court order saying the landlord can shut off the bill.      

Eviction Based on Tenant’s Failure to Pay Utilities

Tenants can be evicted if they fail to meet their utility obligations as outlined in the lease agreement.  Eviction should be considered a last resort, but it may become necessary if the tenant consistently fails to pay utilities and other attempts to resolve the issue have been unsuccessful. 

Before proceeding you should consult with a professional who has experience handling evictions based on the tenant’s failure to pay utilities.  Lynx Legal has handled over 12,000 evictions in the past 15 years, many of them involving evictions based on the tenant’s failure to pay utilities.  We can be reached at 888-441-2355 or [email protected].  Our knowledgeable staff is standing by ready to start your order or answer any questions you may have.