A Connecticut law taking effect in 2026 will make it illegal to charge tenants for utilities unless their unit has its own meter—and most landlords aren't aware of it yet.
Most Connecticut landlords and property managers don't realize that a provision buried in SB00335—An Act Concerning Utility Charges For Residential Dwelling Units—will fundamentally change how they can bill tenants for utilities starting October 1, 2026.
Here's what's happening: The law renders unenforceable any rental agreement clause that requires a tenant to pay for utilities when no separate meter exclusively measures that unit's consumption. In plain terms, if your lease says a tenant must pay utilities and their apartment doesn't have its own meter, that clause becomes legally unenforceable.
This provision directly impacts landlords who currently use master-metered buildings or ratio utility billing systems (RUBS). In these setups, a single meter measures consumption for an entire building or multiple units, and costs are divided among tenants—often proportionally based on unit size, occupancy, or some other formula. Under the new law, you lose the contractual right to collect those charges from tenants.
Properties with individual meters for each unit are unaffected. If each tenant's apartment has its own meter that exclusively measures that unit's consumption, you can continue billing for utilities as you do now.
The financial impact depends on your portfolio. If you operate master-metered or RUBS properties, you'll need to decide whether to absorb utility costs in rent or invest in meter installation. This is not a minor consideration—utility costs represent a significant operating expense in residential properties.
For properties where you renew leases, the clock is ticking. The law applies to rental agreements "entered into or renewed on or after" October 1, 2026. This means you have roughly two years to plan. If you renew a lease before that date with a utility-billing clause, it may remain enforceable under the old rules—but once October 1, 2026 arrives, any new or renewed lease cannot include an unenforceable utility-billing provision.
First, audit your portfolio. Identify which properties are master-metered or use RUBS. Calculate the annual utility cost per unit to understand the financial exposure.
Second, explore your options. Individual meter installation is capital-intensive but creates a permanent solution. Alternatively, you may choose to build utility costs into base rent, which simplifies administration but may affect competitiveness or tenant perception.
Third, consult with your lease templates and legal counsel. You'll want to ensure compliance before October 1, 2026, and understand how the transition affects existing leases that renew after that date.
The law is found in Section 1, Page 2 of 2 of SB00335. For a detailed, property-management-specific breakdown of your obligations and options under this law, a free resource guide is available through Connecticut real estate trade associations and the Connecticut Department of Housing.