Free Texas Utility Payment Disclosure | Fillable PDF Form

⚡ Texas Utility Payment Disclosure

Disclosure of Utility Payment Responsibilities

📋 Why Utility Disclosure Matters

This disclosure helps tenants:

  • Understand which utilities they must pay
  • Budget for monthly utility costs
  • Know how to set up utility accounts
  • Contact correct utility providers
  • Understand submetering or RUBS if applicable
  • Avoid surprises about utility responsibilities

⚠️ Important Texas Utility Laws

  • § 92.008: Submetering and allocation regulations
  • § 92.301: Landlord cannot cut off utilities as eviction method
  • Disclosure required: Must inform tenant BEFORE lease signing
  • RUBS allowed: Ratio Utility Billing Systems permitted with proper disclosure

Utility Payment Disclosure

Property Information

Utility Responsibilities

⚡ Electricity

Average monthly electric bill (if known)

💧 Water & Sewer
🔥 Natural Gas
🗑️ Trash & Recycling
📡 Internet, Cable & Phone
🔌 Other Utilities & Services

Estimated Monthly Utility Costs

💰 Tenant’s Estimated Monthly Utility Costs

Electricity: $0.00
Water & Sewer: $0.00
Natural Gas: $0.00
Trash Service: $0.00
ESTIMATED TOTAL: $0.00 / month

Note: Actual costs may vary based on usage, season, and rates. This is an estimate only.

Submetering or RUBS Information

How to Set Up Utilities

🔧 Setting Up Utility Service

For utilities tenant pays directly:

  • Contact utility company before move-in (at least 3-5 days)
  • Provide property address and desired start date
  • Have photo ID and payment method ready
  • Deposit may be required (typically $100-$200 per utility)
  • Some providers check credit score

Deregulated Electric Market (Texas)

⚡ Texas Electric Choice

Most of Texas has deregulated electricity – tenant can choose provider:

  • Compare rates at PowerToChoose.org (official comparison site)
  • Fixed-rate vs. variable-rate plans
  • Contract lengths: 12, 24, or 36 months typical
  • Read Electricity Facts Label (EFL) carefully
  • Watch for early termination fees

Landlord Contact Information

Tenant Acknowledgment

Signatures

📚 Utility Payment Disclosure Guide

Why Provide Utility Disclosure?

Utility disclosure benefits both landlord and tenant:

  • Tenant budgeting: Helps tenant plan for total housing costs
  • Prevents disputes: Clear understanding of who pays what
  • Avoids surprises: Tenant knows utility costs upfront
  • Professional practice: Shows transparency and good management
  • Legal compliance: Meets disclosure requirements for submetering/RUBS

Common Texas Utilities

Typical utilities for rental properties:

  • Electricity: Required for all properties
    • Deregulated in most of Texas (tenant chooses provider)
    • Average cost: $100-$200/month for apartment, $150-$300 for house
    • Higher in summer (A/C), lower in winter
  • Water & Sewer: Usually provided by city/municipality
    • Includes water, sewer, sometimes trash
    • Average cost: $50-$100/month
    • May be flat rate or metered
  • Natural Gas: If property has gas appliances
    • Heating, water heater, stove, dryer
    • Average cost: $30-$100/month
    • Higher in winter (heating)
  • Trash/Recycling: Waste removal
    • Often included in rent
    • If separate: $20-$40/month
    • Some cities provide as part of water bill
  • Internet/Cable/Phone: Optional services
    • Tenant responsibility unless included
    • Internet: $50-$100/month
    • Bundle packages available

Who Pays: Landlord vs. Tenant

Different arrangements for utility payment:

Common Payment Structures

  • Tenant pays directly:
    • Tenant sets up account with utility company
    • Receives bill directly from provider
    • Pays provider directly
    • Most common for single-family homes
  • Landlord pays (included in rent):
    • Landlord maintains utility accounts
    • Cost built into rent amount
    • Tenant has no separate utility bills
    • Common for water/trash in apartments
  • Submetering:
    • Individual meters for each unit
    • Landlord reads meters and bills tenant
    • Tenant pays actual usage
    • Must comply with TX § 92.008
  • RUBS (Ratio Utility Billing System):
    • Total building cost allocated by formula
    • Based on square footage, occupants, or equal share
    • Landlord bills tenant for allocated portion
    • Common in apartments for water/sewer

Texas Submetering Regulations

Texas Property Code § 92.008 governs submetering:

  • Registration required: Landlord must register with state as submetering company
  • Disclosure required: Must inform tenant of submetering before lease
  • Meter accuracy: Meters must meet state standards
  • Billing transparency: Bills must show usage and rate
  • Rate limitations: Cannot charge more than landlord pays provider
  • Common areas: Cannot pass through cost of common area utilities

RUBS (Ratio Utility Billing)

How RUBS works:

  1. Landlord receives master bill: From utility for entire property
  2. Cost is allocated: Among units by predetermined formula
  3. Common allocation methods:
    • Square footage (bigger units pay more)
    • Number of occupants (more people pay more)
    • Equal share (all units pay same)
    • Hybrid (50% square footage + 50% occupants)
  4. Tenant billed: For their allocated share

RUBS considerations:

  • Formula must be disclosed: Tenant should know how cost calculated
  • No conservation incentive: Tenant’s usage doesn’t directly affect bill
  • Can vary monthly: Based on total property usage
  • Legal in Texas: If properly disclosed

Texas Deregulated Electric Market

Most of Texas has electric choice:

  • Deregulated areas: Houston, Dallas, Fort Worth, most major cities
  • Not deregulated: Austin, San Antonio, El Paso, co-ops, municipal utilities
  • PowerToChoose.org: Official comparison site
    • Compare rates from all providers
    • Filter by plan type and length
    • Read Electricity Facts Label (EFL)
  • Plan types:
    • Fixed-rate: Price locked for contract term
    • Variable-rate: Price changes monthly
    • Indexed: Tied to wholesale price
  • Contract lengths: Typically 12, 24, or 36 months
  • Early termination fees: Usually $150-$300 if cancel early

Setting Up Utilities

Tenant checklist for utility setup:

  1. 2 weeks before move-in: Contact utilities to schedule service
    • Electric (if deregulated, choose provider first)
    • Gas (if applicable)
    • Water/sewer (if tenant-paid)
  2. Have ready:
    • Photo ID
    • Social Security Number (for credit check)
    • Property address
    • Desired start date
    • Payment method for deposit
  3. Deposits:
    • Electric: $100-$200 typical
    • Gas: $50-$150 typical
    • Water: $50-$100 typical
    • May be waived with good credit
  4. Service activation:
    • Electric: Usually within 24 hours
    • Gas: May require appointment
    • Water: Usually immediate

Estimating Utility Costs

Factors affecting utility costs:

  • Size of property: Larger = higher costs
  • Age/insulation: Older = less efficient
  • Number of occupants: More people = higher usage
  • Season: Summer (A/C) and winter (heat) peak
  • Usage habits: Conservation saves money

Average monthly costs (Texas):

  • 1-bedroom apartment: $150-$250 total utilities
  • 2-bedroom apartment: $200-$350
  • Small house (1,500 sq ft): $250-$400
  • Large house (2,500+ sq ft): $350-$600+

Landlord Responsibilities

What landlords must do:

  • Cannot shut off utilities: § 92.301 prohibits landlord from cutting utilities as eviction method
  • Maintain systems: Keep HVAC, plumbing, electric in working order
  • Provide disclosure: Inform tenant of utility responsibilities before lease
  • Transfer service: When tenant moves out, transfer back to landlord name
  • Pay master bills: If submetering/RUBS, landlord must pay provider on time

Best Practices

✅ Best Practices for Landlords

  • Provide early: Include utility disclosure with lease application
  • Be comprehensive: List all utilities and who pays
  • Include contact info: Provider names, phone numbers
  • Estimate costs: Help tenant budget with realistic estimates
  • Explain systems: If using submetering/RUBS, explain clearly
  • Recommend setup timing: Tell tenant when to contact utilities
  • Provide resources: Link to PowerToChoose.org for electric
  • Update regularly: Keep provider contact info current
  • Note deposits: Warn tenant about required deposits
  • Get acknowledgment: Have tenant sign disclosure

⚖️ Legal Disclaimer

This form is provided for informational purposes only and does not constitute legal advice. Utility payment disclosure informs tenant which utilities they must pay and estimated costs. Texas Property Code § 92.301 prohibits landlord from shutting off utilities as eviction method. § 92.008 regulates submetering. RUBS (Ratio Utility Billing) allowed if properly disclosed.

Submetering/RUBS disclosure required. If using submetering or RUBS, must fully disclose to tenant before lease signing. Explain how billing works, allocation formula, when bills due, and late fees. Cannot charge tenant more than landlord pays utility provider. Keep records of utility bills and allocation calculations.

Estimates are approximations. Actual utility costs vary based on usage, season, rates, and other factors. Landlord not responsible for tenant’s utility usage or costs. For questions about utility regulations or submetering requirements, consult real estate attorney.