Connecticut SB335: What Landlords Must Know About Utility Billing

Most Connecticut landlords don't realize that a provision buried in SB335 will fundamentally change how they can bill tenants for utilities—and it takes effect in less than two years.

Here's the core issue: Under the new law, a rental agreement clause requiring a tenant to pay for utilities is unenforceable unless utilities delivered to that tenant's unit are measured by a separate, individual submeter. That's it. No exceptions for ratio utility billing systems, master meters, or allocation formulas.

What This Means in Practice

If you currently use any method other than individual submetering to charge tenants for utilities—whether that's splitting a master meter bill proportionally, using ratio utility billing, or any other allocation approach—you will no longer be able to enforce those charges through your lease.

This affects landlords of all sizes. A small-business owner managing a duplex or a four-unit building faces the same restriction as a larger property management company. If your lease says the tenant pays utilities but you don't have an individual submeter for that unit, that provision becomes legally unenforceable.

The practical consequence is significant: you cannot collect utility charges from tenants without individual submeters. Period. Tenants can refuse to pay, and you have no contractual recourse.

The Timeline

The law becomes effective October 1, 2026. However, it applies only to rental agreements that are entered into or renewed on or after that date. This means:

• Existing leases signed before October 1, 2026, are not immediately affected by the law.
• When those leases renew or when you sign new agreements, the restriction kicks in.
• Any lease you execute or renew on or after October 1, 2026, must comply.

The provision is found in Section 1 of SB335, which amends Connecticut General Statutes §47a-4 (Page 2 of 2 of the bill).

What Landlords Should Do Now

If you rely on utility billing as part of your rental income, you have options to consider before October 2026:

• Install individual submeters on units that don't have them, if feasible and cost-effective.
• Review your current leases to understand which agreements expire before October 1, 2026, and which will renew after.
• Adjust your financial projections for properties where submeter installation isn't practical—you may need to absorb utility costs or adjust rent.
• Consult with legal counsel about lease language and compliance for renewals.

This is not a last-minute surprise. The law has been on the books; the effective date is set. Landlords and property managers who plan now will avoid disputes and enforceability problems down the road.

For a detailed, business-specific analysis of how SB335 applies to your property type and lease structure, consult your attorney or local property management association.