Are landlords required to pay for water and garbage?

When setting the rental rate for a rental property or looking for a new place, landlords and tenants frequently ask: “Are landlords required to pay for water and garbage?”

Typically, landlords aren’t required to pay for these utilities. However, different states and cities have their own laws dictating what utilities a landlord may be required to pay for, so it’s critical to understand the rules governing the area where you operate your business. And for tenants, finding properties that cover, or at least partially cover, utilities can sweeten the deal.

Our comprehensive guide examines whether landlords are required to pay for water and garbage. Read on for more.

Key Insights

• Are landlords required to pay for water and garbage? In most cases nationwide, landlords are not responsible for paying these utilities.
• Some localities, including New York City, require landlords to cover water and garbage collection. Always check your local laws to understand your responsibilities as a landlord or tenant.
• The property type often dictates who pays for what.
• TurboTenant has state-specific leases from all fifty states and a robust maintenance and repair tracking system so landlords and tenants can communicate clearly about any issues that may arise.

Understanding Landlord Responsibilities for Utilities

Landlord responsibilities regarding utilities vary by state or local governments. Regardless of the law, it’s always a good idea to clearly outline what each party is responsible for when entering any lease agreement.

For landlords, this ensures that tenants know exactly what they have to pay each month and limits the potential for miscommunication or missed payments.

For tenants, a clear understanding of responsibilities before signing a lease ensures that no penalties are levied against them and that they stay in good standing with their landlord and the lease agreement.

Generally, landlords are only required to pay for utilities in certain circumstances and specific jurisdictions.

Are landlords required to pay for water?

For water, the general understanding is that landlords must provide access to hot and cold water as a basic legal requirement. Not providing access to clean water could result in penalties or allow a tenant to contest the lease legally. But who has to pay for the utility?

In most states, landlords are not required to pay for water. However, many landlords place the bill in their name and pass that expense on to the tenant. This situation should be clearly explained in the lease so that there is no question or potential for misunderstanding at any point during the lease term.

However, in some places, landlords are required to pay for water. For example, in New York City, landlords must pay for water and sewer services, usually including an assumed average cost in the monthly rent payment.

In another East Coast state, Massachusetts, landlords are required to pay for water. But, landlords can bill tenants directly for water if all of the following are true:

• Tenancy began on or after March 16, 2005.
• A written lease signed by both parties clearly states water is the tenant’s responsibility, how the tenant will be billed, and how the tenant should pay for the utility.
• A licensed plumber installs submeters that track water usage for each apartment.
• Faucets, showers, and toilets must be low-flow.
• Landlords have received approval by filing a certificate with the Board of Health or Inspectional Services Department.

Massachusetts law dictates that landlords must pay for a tenant’s water unless the landlord has completed all of the above.

Before constructing and choosing a lease agreement, check your local ordinances to make sure there are any additional requirements for landlords to pay for water utilities.

Are landlords required to pay for garbage?

In most places in the United States, landlords do not have to pay for garbage or trash pickup services. However, there are some caveats depending on the unit type or its physical location.

For instance, in New York City, trash pickup is covered by general city taxes, including property taxes, with many landlords choosing to fold that cost into the rent payments. In Montgomery County, Maryland, landlords must pay for and provide trash receptacles and handle frequent removals in multi-unit buildings. Montgomery County landlords do not have to provide receptacles for single-family units but do have to handle trash removal, provided that the unit is not part of the county garbage collection service.

Like other utilities, landlords and tenants should be aware of the local laws and regulations regarding garbage removal and closely read the lease agreement before signing.

How to Determine Who Pays for Water and Garbage

There are two essential steps in determining and understanding who is responsible for utility payments in every rental situation. A third point illustrates how landlords and property owners decide who pays for specific utilities.

• First, make sure everyone is clear on local landlord-tenant laws. Since every state and local community is unique, knowing all your responsibilities as a landlord or tenant is important. Both parties can get up to speed by visiting the state or local government website or accessing an internet resource like Findlaw.com.
• Next, ensure the lease agreement spells out the requirements for landlords and tenants regarding water and garbage. It’s a great idea to thoroughly review the elements before signing so there are no surprises. TurboTenant’s state-specific leases ensure that both parties’ rights are accounted for to start the lease generation process on the right foot.
• The property type has a significant impact on who pays what. For single-family homes where the property has its own water meter, it’s easy for the tenant to put the bill in their name and pay it. But, in multi-family homes and apartments without individual meters for each unit, the bill is typically put in the landlord’s name. They either pay the bill out of rent or add a utility charge to the lease agreement. The same logic applies to garbage, but different cities and states have different trash collection programs that impact who pays for what.

Landlord-Tenant Disputes Over Utility Bills

Most landlord-tenant disputes regarding utility bills occur when the lease agreement contains ambiguities. This often comes up when no clear language specifically dictates who is and isn’t responsible for each utility, including electricity, phone and internet, water, garbage, sewer, and anything else that could qualify as a utility.

However, a few other things might arise while renting a home that might raise questions for either the landlord or the tenant.

Utility Usage and Fairness

In multi-unit buildings where tenants split the cost of the utilities, a dispute could occur regarding each tenant’s responsibility. For instance, if one unit uses an extraordinary amount of electricity compared to others, a landlord could require the offending unit to cover a high portion of the bill to maintain fairness among all renters. This solution isn’t allowed everywhere, so check your lease and local laws to see if you live in an area where this kind of dispute could arise.

Maintenance and Repairs

In certain instances, a tenant could claim that a landlord should be responsible for a portion of a utility bill if regular upkeep and maintenance are lacking and the cost of using the utility increases because of it. Additionally, outdated appliances or other features in a unit could also increase utility costs, and a landlord might be responsible for addressing the issue or could offer to cover a portion of the related utility.

In all cases, tenants and landlords should keep detailed records of any dispute, and tenants should always continue paying rent in accordance with the rental agreement terms so that a minor dispute doesn’t become a larger one.

How TurboTenant Can Help with Utility Management

So, are landlords required to pay for water and garbage? As you’ve seen above, the answer can get a little complicated. In most cases, no, but there are situations where landlords may be required to cover certain utilities.

TurboTenant can help.

As part of TurboTenant’s all-in-one property management software, landlords can create iron-clad lease agreements demonstrating who is responsible for paying what and when. And with rental maintenance management, tenants can quickly spot a leaky faucet, create a maintenance request from their smartphone, and get the water bill under control.

TurboTenant makes solutions for renting and managing property for the modern age. Sign up for a free account today, or invite your landlord to check it out and see how TurboTenant makes life easier for renters and landlords.