<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>67894</law_id><section_number>55.1-1212</section_number><catch_line>Energy submetering, energy allocation equipment, sewer and water submetering equipment, and ratio utility billing systems; local government fees</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>55.1-1200</reference><reference>55.1-1307</reference><reference>56-1.2</reference><reference>56-245.3</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="55.1">Property and Conveyances</unit><unit label="subtitle" level="2" order_by="1" identifier="III">Rental Conveyances</unit><unit label="chapter" level="3" order_by="1" identifier="12">Virginia Residential Landlord and Tenant Act</unit><unit label="article" level="4" order_by="1" identifier="1">General Provisions</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> As used in this section:
			&#x201C;<span class="dictionary">Energy allocation equipment</span>&#x201D; means the same as that term is defined in &#xA7; <a class="law" title="Definitions" href="/56-245.2/">56-245.2</a>.
			&#x201C;Energy submetering equipment&#x201D; has the same meaning ascribed to &#x201C;submetering equipment&#x201D; in &#xA7; <a class="law" title="Definitions" href="/56-245.2/">56-245.2</a>.
			&#x201C;<span class="dictionary">Local government fees</span>&#x201D; means any local government charges or fees assessed against a <span class="dictionary">residential building</span>, including charges or fees for stormwater, recycling, trash collection, elevator testing, fire or life safety testing, or residential rental inspection programs.
			&#x201C;<span class="dictionary">Ratio utility billing system</span>&#x201D; means a program that utilizes a mathematical formula for allocating, among the <span class="dictionary">tenants</span> in a <span class="dictionary">residential building</span>, the actual or anticipated water, sewer, electrical, oil, or natural gas billings billed to the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> from a third-<span class="dictionary">party</span> provider of the utility service. Permitted allocation methods may include formulas based on square footage, occupancy, number of bedrooms, or some other specific method agreed to by the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> and the <span class="dictionary">tenant</span> in the <span class="dictionary">rental agreement</span> or lease.
			&#x201C;<span class="dictionary">Residential building</span>&#x201D; means all of the individual units served through the same utility-owned meter within a <span class="dictionary">residential building</span> that is defined in &#xA7; <a class="law" title="Definitions" href="/56-245.2/">56-245.2</a> as an apartment building or house or all of the individual <span class="dictionary">dwelling units</span> served through the same utility-owned meter within a manufactured home park as defined in &#xA7; <a class="law" title="Definitions" href="/55.1-1300/">55.1-1300</a>.
			&#x201C;<span class="dictionary">Water and sewer submetering equipment</span>&#x201D; means equipment used to measure actual water or sewer usage in any <span class="dictionary">residential building</span> when such equipment is not owned or controlled by the utility or other provider of water or sewer service that provides service to the <span class="dictionary">residential building</span>. <a id="paragraph-245882" class="section-permalink" href="https://vacode.org/55.1-1212/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> Energy submetering equipment, <span class="dictionary">energy allocation equipment</span>, <span class="dictionary">water and sewer submetering equipment</span>, or a <span class="dictionary">ratio utility billing system</span> may be used in a <span class="dictionary">residential building</span> if clearly stated in the <span class="dictionary">rental agreement</span> or lease for the <span class="dictionary">residential building</span>. All energy submetering equipment and <span class="dictionary">energy allocation equipment</span> shall meet the requirements and standards established and enforced by the State Corporation Commission pursuant to &#xA7; <a class="law" title="Commission to promulgate regulations and standards" href="/56-245.3/">56-245.3</a>. <a id="paragraph-245883" class="section-permalink" href="https://vacode.org/55.1-1212/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> If energy submetering equipment, <span class="dictionary">energy allocation equipment</span>, or <span class="dictionary">water and sewer submetering equipment</span> is used in any <span class="dictionary">residential building</span>, the <span class="dictionary">owner</span>, manager, or operator of such <span class="dictionary">residential building</span> shall bill the <span class="dictionary">tenant</span> for electricity, oil, natural gas, or water and sewer for the same billing period as the utility serving the <span class="dictionary">residential building</span>, unless the <span class="dictionary">rental agreement</span> or lease expressly provides otherwise. The <span class="dictionary">owner</span>, manager, or operator of such <span class="dictionary">residential building</span> may charge and collect from the <span class="dictionary">tenant</span> additional service charges, including monthly billing fees, account set-up fees, or account move-out fees, to cover the actual costs of administrative expenses and billing charged to the <span class="dictionary">residential building</span> <span class="dictionary">owner</span>, manager, or operator by a third-<span class="dictionary">party</span> provider of such services, provided that such charges are agreed to by the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> and the <span class="dictionary">tenant</span> in the <span class="dictionary">rental agreement</span> or lease. The <span class="dictionary">residential building</span> <span class="dictionary">owner</span> may require the <span class="dictionary">tenant</span> to pay a late charge of up to $5 if the <span class="dictionary">tenant</span> fails to make payment when due, which shall not be less than 15 days following the date of mailing or delivery of the bill sent pursuant to this section. <a id="paragraph-245884" class="section-permalink" href="https://vacode.org/55.1-1212/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> If a <span class="dictionary">ratio utility billing system</span> is used in any <span class="dictionary">residential building</span>, in lieu of increasing the <span class="dictionary">rent</span>, the <span class="dictionary">owner</span>, manager, or operator of such <span class="dictionary">residential building</span> may employ such a program that utilizes a mathematical formula for allocating, among the <span class="dictionary">tenants</span> in a <span class="dictionary">residential building</span>, the actual or anticipated water, sewer, electrical, oil, or natural gas billings billed to the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> from a third-<span class="dictionary">party</span> provider of the utility service. The <span class="dictionary">owner</span>, manager, or operator of the <span class="dictionary">residential building</span> may charge and collect from the <span class="dictionary">tenant</span> additional service charges, including monthly billing fees, account set-up fees, or account move-out fees, to cover the actual costs of administrative expenses and billings charged to the <span class="dictionary">residential building</span> <span class="dictionary">owner</span>, manager, or operator by a third-<span class="dictionary">party</span> provider of such services, provided that such charges are agreed to by the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> and the <span class="dictionary">tenant</span> in the <span class="dictionary">rental agreement</span> or lease. The <span class="dictionary">residential building</span> <span class="dictionary">owner</span> may require the <span class="dictionary">tenant</span> to pay a late charge of up to $5 if the <span class="dictionary">tenant</span> fails to make payment when due, which shall not be less than 15 days following the date of mailing or delivery of the bill sent pursuant to this section. The late charge shall be deemed <span class="dictionary">rent</span> (i) as defined in &#xA7; <a class="law" title="Definitions" href="/55.1-1200/">55.1-1200</a> if a <span class="dictionary">ratio utility billing system</span> is used in a residential <span class="dictionary">multifamily dwelling unit</span> subject to this chapter or (ii) as defined in &#xA7; <a class="law" title="Definitions" href="/55.1-1300/">55.1-1300</a> if a <span class="dictionary">ratio utility billing system</span> is used in a manufactured home park subject to the Manufactured Home Lot Rental Act (&#xA7; <a class="law" title="Definitions" href="/55.1-1300/">55.1-1300</a> et seq.). <a id="paragraph-245885" class="section-permalink" href="https://vacode.org/55.1-1212/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> <span class="dictionary">Energy allocation equipment</span> shall be tested periodically by the <span class="dictionary">owner</span>, manager, or operator of the <span class="dictionary">residential building</span>. Upon the request by a <span class="dictionary">tenant</span>, the <span class="dictionary">owner</span> shall test the <span class="dictionary">energy allocation equipment</span> without charge. The test conducted without charge to the <span class="dictionary">tenant</span> shall not be conducted more frequently than once in a 24-month period for the same <span class="dictionary">tenant</span>. The <span class="dictionary">tenant</span> or his designated representative may be present during the testing of the <span class="dictionary">energy allocation equipment</span>. A written report of the results of the test shall be made to the <span class="dictionary">tenant</span> within 10 working days after the completion of the test. <a id="paragraph-245886" class="section-permalink" href="https://vacode.org/55.1-1212/#E"><i class="fa fa-link"/></a></p></section>
						<section id="F"><p><span class="prefix-number">F.</span> The <span class="dictionary">owner</span> of any <span class="dictionary">residential building</span> shall maintain adequate records regarding energy submetering equipment, <span class="dictionary">energy allocation equipment</span>, <span class="dictionary">water and sewer submetering equipment</span>, or a <span class="dictionary">ratio utility billing system</span>. A <span class="dictionary">tenant</span> may inspect and copy the records for the leased <span class="dictionary">premises</span> during reasonable business hours at a convenient location within or serving the <span class="dictionary">residential building</span>. The <span class="dictionary">owner</span> of the <span class="dictionary">residential building</span> may impose and collect a reasonable charge for copying documents, reflecting the actual costs of <span class="dictionary">materials</span> and labor for copying, prior to providing copies of the records to the <span class="dictionary">tenant</span>. <a id="paragraph-245887" class="section-permalink" href="https://vacode.org/55.1-1212/#F"><i class="fa fa-link"/></a></p></section>
						<section id="G"><p><span class="prefix-number">G.</span> Notwithstanding any enforcement <span class="dictionary">action</span> undertaken by the State Corporation Commission pursuant to its authority under &#xA7; <a class="law" title="Commission to promulgate regulations and standards" href="/56-245.3/">56-245.3</a>, <span class="dictionary">tenants</span> and <span class="dictionary">owners</span> shall retain any private right of <span class="dictionary">action</span> resulting from any breach of the <span class="dictionary">rental agreement</span> or lease terms required by this section or &#xA7; <a class="law" title="Commission to promulgate regulations and standards" href="/56-245.3/">56-245.3</a>, if applicable, to the same extent as such <span class="dictionary">actions</span> may be maintained for breach of other terms of the <span class="dictionary">rental agreement</span> or lease under this chapter, if applicable. The use of energy submetering equipment, <span class="dictionary">energy allocation equipment</span>, <span class="dictionary">water and sewer submetering equipment</span>, or a <span class="dictionary">ratio utility billing system</span> is not within the <span class="dictionary">jurisdiction</span> of the Department of Agriculture and Consumer Services under Chapter 56 (&#xA7; <a class="law" title="Definitions generally" href="/3.2-5600/">3.2-5600</a> et seq.) of Title 3.2. <a id="paragraph-245888" class="section-permalink" href="https://vacode.org/55.1-1212/#G"><i class="fa fa-link"/></a></p></section>
						<section id="H"><p><span class="prefix-number">H.</span> In lieu of increasing the <span class="dictionary">rent</span>, the <span class="dictionary">owner</span>, manager, or operator of a <span class="dictionary">residential building</span> may employ a program that utilizes a mathematical formula for allocating the actual or anticipated <span class="dictionary">local government fees</span> billed to the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> among the <span class="dictionary">tenants</span> in such <span class="dictionary">residential building</span> if clearly stated in the <span class="dictionary">rental agreement</span> or lease. Permitted allocation methods may include formulas based upon square footage, occupancy, number of bedrooms, or some other specific method agreed to by the <span class="dictionary">residential building</span> <span class="dictionary">owner</span> and the <span class="dictionary">tenant</span> in the <span class="dictionary">rental agreement</span> or lease. Such <span class="dictionary">owner</span>, manager, or operator of a <span class="dictionary">residential building</span> may also charge and collect from each <span class="dictionary">tenant</span> additional service charges, including monthly billing fees, account set-up fees, or account move-out fees, to cover the actual costs of administrative expenses for administration of such a program. If the building is residential and is subject to (i) this chapter, such <span class="dictionary">local government fees</span> and administrative expenses shall be deemed to be <span class="dictionary">rent</span> as defined in &#xA7; <a class="law" title="Definitions" href="/55.1-1200/">55.1-1200</a> or (ii) the Manufactured Home Lot Rental Act (&#xA7; <a class="law" title="Definitions" href="/55.1-1300/">55.1-1300</a> et seq.), such <span class="dictionary">local government fees</span> and administrative expenses shall be deemed to be <span class="dictionary">rent</span> as defined in &#xA7; <a class="law" title="Definitions" href="/55.1-1300/">55.1-1300</a>. <a id="paragraph-245889" class="section-permalink" href="https://vacode.org/55.1-1212/#H"><i class="fa fa-link"/></a></p></section>
						<section id="I"><p><span class="prefix-number">I.</span> Nothing in this section shall be construed to prohibit an <span class="dictionary">owner</span>, manager, or operator of a <span class="dictionary">residential building</span> from including water, sewer, electrical, natural gas, oil, or other utilities in the amount of <span class="dictionary">rent</span> as specified in the <span class="dictionary">rental agreement</span> or lease. <a id="paragraph-245890" class="section-permalink" href="https://vacode.org/55.1-1212/#I"><i class="fa fa-link"/></a></p></section></text><history>1992, c. 766, &#xA7; 55-226.2; 2003, c. 355; 2005, c. 278; 2010, c. 550; 2012, c. 338; 2014, c. 501; 2015, c. 596; 2017, c. 730; 2019, c. 712.</history><metadata></metadata></law>
