A Connecticut law taking effect in 2026 will make it illegal to bill tenants for utilities unless each unit has its own meter—and most landlords don't know it yet.
Most Connecticut landlords and property managers have never heard of SB00335. But if you currently bill tenants for utilities—whether through a flat fee, ratio utility billing, or shared allocation—this law will reshape how you handle those charges starting October 1, 2026.
Under Section 1 of SB00335 (amending Connecticut General Statutes §47a-4(a)(11)), any rental agreement clause requiring a tenant to pay utility charges is now unenforceable unless a separate meter exclusively measures that tenant's unit's consumption.
In plain terms: you cannot legally bill a tenant for utilities unless that unit has its own dedicated meter. This applies to rental agreements entered into or renewed on or after October 1, 2026.
This provision directly impacts small and mid-sized landlords who own multi-unit properties—duplexes, triplexes, apartment buildings, and condos—where utilities are currently metered at the building level rather than the unit level. It also affects owners who use ratio utility billing systems (RUBS) or charge flat utility fees to tenants as part of rent.
Single-family rental owners with separate meters for each property are unaffected. Landlords whose properties already have individual unit meters face no change.
The effective date matters: the law applies only to rental agreements entered into or renewed on or after October 1, 2026. Existing leases signed before that date are not automatically affected, but once a lease renews or a new tenant moves in, the new rules apply.
This creates a timeline. If you currently bill tenants for shared utilities, you have roughly two years to decide: install separate meters for each unit, or absorb utility costs yourself and stop billing tenants.
For properties without individual meters, your options are limited:
Install separate meters. This is capital-intensive but allows you to continue billing tenants for actual consumption. The cost varies widely depending on your building's age, layout, and utility provider infrastructure.
Absorb utility costs. You can factor expected utility expenses into rent and stop billing separately. This simplifies administration but reduces your flexibility if consumption patterns change.
Plan ahead for lease renewals. You don't need to retrofit everything by October 2026—only new agreements or renewals after that date must comply. But waiting until September 2026 to decide is risky.
If you use ratio utility billing or flat fees today, those arrangements will become unenforceable for new or renewed leases. Tenants could legally refuse to pay, and you would have no recourse under the lease.
Review your current lease language and utility billing practices. If you bill tenants without separate meters, consult with your accountant or property counsel about the financial impact of the two options above. Check with your utility providers about the feasibility and cost of adding individual meters to your properties.
Connecticut's rental housing laws continue to shift. Staying ahead of these changes protects your business and your tenant relationships.
For a detailed, business-specific resource on Connecticut rental law updates, contact your local real estate trade association or property management professional organization.