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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>74794</law_id><section_number>55.1-1404</section_number><catch_line>Energy submetering, energy allocation equipment, sewer and water submetering equipment, ratio utility billings systems; local government fees</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><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="14">Nonresidential Tenancies</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">Building</span>&#x201D; means all of the individual units served through the same utility-owned meter within a <span class="dictionary">building</span> that is used as a nonresidential tenancy, including a <span class="dictionary">building</span> used as an office <span class="dictionary">building</span> or shopping center as those terms are defined in &#xA7; <a class="law" title="Definitions" href="/56-245.2/">56-245.2</a>.
			&#x201C;<span class="dictionary">Campground</span>&#x201D; means the same as that term is defined in &#xA7; <a class="law" title="Definitions" href="/35.1-1/">35.1-1</a>.
			&#x201C;<span class="dictionary">Campsite</span>&#x201D; means the same as that term is defined in &#xA7; <a class="law" title="Definitions" href="/35.1-1/">35.1-1</a>.
			&#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">building</span> or <span class="dictionary">campground</span>, including stormwater, recycling, trash collection, elevator testing, or fire or life safety testing.
			&#x201C;<span class="dictionary">Ratio utility billing system</span>&#x201D; means a program that utilizes a mathematical formula for allocating, among the tenants in a <span class="dictionary">building</span> or <span class="dictionary">campground</span>, the actual or anticipated water, sewer, electrical, oil, or natural gas billings billed to the <span class="dictionary">building</span> or <span class="dictionary">campground</span> owner 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">building</span> or <span class="dictionary">campground</span> owner and the tenant in the rental agreement or lease.
			&#x201C;<span class="dictionary">Water and sewer submetering equipment</span>&#x201D; means equipment used to measure actual water or sewer usage in any nonresidential rental unit, as defined in &#xA7; <a class="law" title="Definitions" href="/56-245.2/">56-245.2</a>, 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">building</span> in which the nonresidential rental unit is located or <span class="dictionary">campground</span> where the <span class="dictionary">campsite</span> is located. <a id="paragraph-268771" class="section-permalink" href="https://vacode.org/55.1-1404/#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">building</span> or <span class="dictionary">campground</span> if clearly stated in the rental agreement or lease for the leased premises. 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-268772" class="section-permalink" href="https://vacode.org/55.1-1404/#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">water and sewer submetering equipment</span>, or <span class="dictionary">energy allocation equipment</span> is used in any <span class="dictionary">building</span> or <span class="dictionary">campground</span>, the owner, manager, or operator of the <span class="dictionary">building</span> or <span class="dictionary">campground</span> shall bill the tenant for electricity, oil, natural gas, or water and sewer for the same billing period as the utility serving the <span class="dictionary">building</span> or <span class="dictionary">campground</span>, unless the rental agreement or lease expressly provides otherwise. The owner, manager, or operator of the <span class="dictionary">building</span> or <span class="dictionary">campground</span> may charge and collect from the tenant 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">building</span> or <span class="dictionary">campground</span> owner, 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">building</span> or <span class="dictionary">campground</span> owner and the tenant in the rental agreement or lease. The <span class="dictionary">building</span> or <span class="dictionary">campground</span> owner may require the tenant to pay a late charge of up to $5 if the tenant 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-268773" class="section-permalink" href="https://vacode.org/55.1-1404/#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">building</span> or <span class="dictionary">campground</span>, in lieu of increasing the rent, the owner, manager, or operator of the <span class="dictionary">building</span> or <span class="dictionary">campground</span> may employ such a program that utilizes a mathematical formula for allocating, among the tenants in a <span class="dictionary">building</span> or <span class="dictionary">campground</span>, the actual or anticipated water, sewer, electrical, oil, or natural gas billings billed to the <span class="dictionary">building</span> or <span class="dictionary">campground</span> owner from a third-<span class="dictionary">party</span> provider of the utility service. The owner, manager, or operator of the <span class="dictionary">building</span> or <span class="dictionary">campground</span> may charge and collect from the tenant 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">building</span> or <span class="dictionary">campground</span> owner, 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">building</span> or <span class="dictionary">campground</span> owner and the tenant in the rental agreement or lease. The <span class="dictionary">building</span> or <span class="dictionary">campground</span> owner may require the tenant to pay a late charge of up to $5 if the tenant 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-268774" class="section-permalink" href="https://vacode.org/55.1-1404/#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 owner, manager, or operator of the <span class="dictionary">building</span> or <span class="dictionary">campground</span>. Upon the request by a tenant, the owner shall test the <span class="dictionary">energy allocation equipment</span> without charge. The test conducted without charge to the tenant shall not be conducted more frequently than once in a 24-month period for the same tenant. The tenant 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 tenant within 10 working days after the completion of the test. <a id="paragraph-268775" class="section-permalink" href="https://vacode.org/55.1-1404/#E"><i class="fa fa-link"/></a></p></section>
						<section id="F"><p><span class="prefix-number">F.</span> The owner of any <span class="dictionary">building</span> or <span class="dictionary">campground</span> shall maintain adequate records regarding energy submetering equipment, <span class="dictionary">water and sewer submetering equipment</span>, <span class="dictionary">energy allocation equipment</span>, or a <span class="dictionary">ratio utility billing system</span>. A tenant may inspect and copy the records for the leased premises during reasonable business hours at a convenient location within the <span class="dictionary">building</span> or <span class="dictionary">campground</span>. The owner of the <span class="dictionary">building</span> or <span class="dictionary">campground</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 tenant. <a id="paragraph-268776" class="section-permalink" href="https://vacode.org/55.1-1404/#F"><i class="fa fa-link"/></a></p></section>
						<section id="G"><p><span class="prefix-number">G.</span> Notwithstanding any enforcement action 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>, tenants and owners shall retain any private right of action resulting from any breach of the rental agreement 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 actions may be maintained for breach of other terms of the rental agreement or lease under this chapter, if applicable. The use of energy submetering equipment, <span class="dictionary">water and sewer submetering equipment</span>, <span class="dictionary">energy allocation 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-268777" class="section-permalink" href="https://vacode.org/55.1-1404/#G"><i class="fa fa-link"/></a></p></section>
						<section id="H"><p><span class="prefix-number">H.</span> In lieu of increasing the rent, the owner, manager, or operator of a <span class="dictionary">building</span> or <span class="dictionary">campground</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">building</span> or <span class="dictionary">campground</span> owner among the tenants in such <span class="dictionary">building</span> or <span class="dictionary">campground</span> if clearly stated in the rental agreement or lease for the leased premises. 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">building</span> or <span class="dictionary">campground</span> owner and the tenant in the rental agreement or lease. Such owner, manager, or operator of a <span class="dictionary">building</span> or <span class="dictionary">campground</span> may also charge and collect from each tenant 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. <a id="paragraph-268778" class="section-permalink" href="https://vacode.org/55.1-1404/#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 owner, manager, or operator of a <span class="dictionary">building</span> or <span class="dictionary">campground</span> from including water, sewer, electrical, natural gas, oil, or other utilities in the amount of rent as specified in the rental agreement or lease. <a id="paragraph-268779" class="section-permalink" href="https://vacode.org/55.1-1404/#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>
