I just moved into my own condo, and I've been comparing my costs for utilities (gas & water) to what I was paying at my apartment. They were charging me DOUBLE what I'm paying here, plus a $5.00 service fee for the privilege. My usage hasn't changed.
The complex was fairly large, one of many run by Arnel Management, owned by billionaire George Argyros. Apparently, he can't afford to individually meter each unit for their usage, so instead, they average out the total costs of water and gas over the entire complex. Each tenant pays according to the size of their unit.
Well, I was in one of their larger units, but I was a single woman! So I was paying the same as the family of 4 or more! Obviously, this isn't fair, but IS IT LEGAL?
If it's not legal, what next? Better Business Bureau? District Attorney? Who? This is in the state of California.
2007-09-16 11:12:10 · 9 answers · asked by advicemom 2 in Business & Finance ➔ Renting & Real Estate
This is a locality issue. Some places allow it and others don't. I know in Pennsylvania for utilities each unit must be metered differently or it is the landlord's responsibility to pay the utility. This doesn't mean that the landlord can't just charge a higher amount of rent and say "utilities included", which is usually what happens here.
For California specifically, it is legal. Specifically:
Shared utilities
If the utility meter for your rental unit is shared with another unit or another part of the building, then the landlord must reach an agreement with you on who will pay for the shared utilities. This agreement must be in writing (it can be part of the rental agreement or lease), and can consist of one of the following options:
* The landlord can pay for the utilities provided through the meter for your rental unit by placing the utilities in the landlord's name;
* The landlord can have the utilities in the area outside your rental unit put on a separate meter in the landlord's name; or
* You can agree to pay for the utilities provided through the meter for your rental unit to areas outside your rental unit
Since you say it seemed you agreed to an average of the utilities plus a $5.00 surcharge it seems like it would be legal.
http://www.dca.ca.gov/publications/landlordbook/when-rent.shtml
2007-09-16 11:32:56 · answer #1 · answered by Patrick 5 · 3⤊ 1⤋
I am a landlord of 13 yrs that owns upper and lower duplexes. Most of them have one meter for electric, gas, and water.
This is how mine are done.
In the case of the lower being a 2 br and the upper a 1 br, the lower pays 2/3rds and the upper 1/3 of the utilities.
In the case where both upper and lower are 2 bedrooms, the each pay half.
I also have one that has and upper and lower 2 bedroom with a 1 bedroom on the back. Each 2 bedroom pays 40% and the 1 br pays 20% of the utilities.
It must go by the size of the unit as people come and go. And you cant change a lease until it is up.
It doesnt matter if 3 people live in a 2 bedroom and 1 person lives in the other 2 bedroom.
If the 3 people in the 2 bedroom have a one yr lease and has been paying their 1/2. When the 1 person moves into the other 2 bedroom, you cant change the 3 people's portion to make it even. Therefore it goes by the size of the apt.
It is perfectly legal. They get a duplicate of the bill with their portion figured out on it. So they see I am not over charging them. They have 1 week to pay it. If not, then they get a notice. If rent comes in without the utility payment, then the utility gets paid first, therefore making their rent late and a late fee is attached to the amount owed. All this is stated in their lease.
2007-09-16 13:14:11 · answer #2 · answered by kimmamarie 5 · 0⤊ 2⤋
Not only is it legal, but it's pretty common.
Once upon a time that complex included water and gas in the rent. Then when rates for those utilities started getting higher, landlords started billing tenants. There's no meters so they just made up a formula and charge a flat rate based on apartment size.
My guess is that if you added up what they are collecting for those utilities, minus all the service charges, it's probably 1-1/2 to 2 times more than the actual bills.
It also gives the landlord a legal way to increase revenue even tho you have a lease.
2007-09-16 11:28:40 · answer #3 · answered by bdancer222 7 · 2⤊ 2⤋
Yes it is legal .
The only law regarding utilities is that the landlord has to inform prospective tenants of how it is billed .
Persons not liking the set up, are free not to rent there .
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2007-09-16 11:18:14 · answer #4 · answered by kate 7 · 4⤊ 0⤋
Their system for paying by the size of the unit is a poor one. You are paying for the other tennets power, water and gas. One person does not use the same amount of utilitys as 2 or 3. I would check into it. Thats just not right.
2007-09-16 12:11:59 · answer #5 · answered by Leo F 4 · 1⤊ 3⤋
Did you actually read your lease before you signed it?
Typically, if your unit does not have it's own meter, it is OK to include utilities in your RENT, but it has to be a flat amount.
In other words, it can be "$1,000.00 per month, including utilities". In that case, regardless of the actual bill, you pay a flat rate.
But if the amount you are paying in rent changes each month based on the electric usage for the entire complex, that is not allowed in most states.
2007-09-16 11:49:31 · answer #6 · answered by Mike 6 · 0⤊ 4⤋
If it is in your rental agreement that you signed, I believe you'd be S.O.L. Unfortunately, it's not fair, but as long as it's stated before hand and you agreed to it, I think it's technically legal for them to do.
2007-09-16 11:17:01 · answer #7 · answered by Anonymous · 5⤊ 0⤋
You need to look up the rental laws in your state, bc Ive looked at a place that was like that, but Im not in CA. So check out the rental laws an take it from there
2007-09-16 11:16:34 · answer #8 · answered by pixieprincess 3 · 0⤊ 4⤋
No, it is not legal. You are responsible for the utilities that you use. Nothing more.
2007-09-16 11:15:08 · answer #9 · answered by Pipe Junkie 1 · 0⤊ 6⤋