HB 26-1013

House Bill 26-1013, also known as the Ratio Utility Billing Systems Act, allows landlords in Colorado to use a ratio utility billing system to split utility costs among tenants. This means that if certain conditions are met—such as not charging extra fees and excluding common area costs—the landlord can bill each tenant based on their share of the total utilities used. For new buildings constructed after July 1, 2027, utilities must be metered directly or through submeters to ensure accurate billing. The bill has been signed into law, meaning it is now enforceable and affects landlords and tenants in Colorado.

Official Summary

The act authorizes landlords to use a ratio utility billing system to allocate utility charges for a residential premises to individual tenants. The landlord may charge tenants a utility bill using a ratio utility billing system if the landlord meets certain requirements, such as:The aggregate amount billed to all tenants does not exceed the amount charged by the utility provider for service to the entire residential premises;The landlord does not apply a fee or other charge to the tenant in addition to the actual charges from the utility;The utility costs for common areas or shared facilities are excluded from the charges to the tenant; andThe landlord clearly discloses the method of allocation for the dwelling unit in the tenant's rental agreement.     For residential premises constructed with permits applied for on or after July 1, 2027, utility service must be metered directly by the utility provider or by a submeter.(Note: This summary applies to this bill as enacted.)

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