Utilities Information
Tenants should pay special attention to utilities and learn how they are handled with the new rules. If the landlord previously paid the tenant’s utilities and the landlord changes the Rental Agreement to require the tenant to pay utilities as a pass-through expense, the landlord must decrease the Rent to account for the increase in the monthly amount the tenant will pay.
Saint Paul’s Rent Stabilization policies direct how utility billing is handled. Utility billing to landlords or tenants depends on several factors including previous lease arrangements and how the meters are set up.
A separately metered building where each unit has its own meter, utilities are paid in addition to rent and are considered part of the 3% rent increase cap.
A shared meter building where utility use is tracked by each apartment, utilities are paid in addition to rent and are not considered part of the 3% rent increase cap.
A shared meter building where utility use is tracked by each apartment, utilities are included in rent and are considered rent if it is a pass-through expense or if the tenant pays the utility directly, and are considered part of the 3% rent increase cap.
More information about how utilities will be considered, a list of what constitutes “just cause,” and definitions of terms may be found in the amendments to Chapter 193A related to Rent Stabilization or by viewing the utilities infographic.
