Concerning the use of a ratio utility billing system by a landlord to allocate utility charges to tenants.
Summary
HB261013 authorizes landlords in Colorado to use a ratio utility billing system (RUBS) to allocate utility costs among tenants in the same residential premises. The bill permits this method only if the total amount billed to all tenants does not exceed the utility provider’s charge for the entire property, the landlord does not add a markup or administrative fee beyond actual utility charges, and costs for common areas or shared facilities are excluded from tenant allocations.
The bill also requires landlords to clearly and conspicuously disclose the allocation method in the rental agreement or an addendum. In effect, it creates a specific statutory exception to existing law that generally prohibits landlords from charging tenants more than the utility provider’s amount for service to the tenant’s dwelling unit, while preserving that prohibition outside the bill’s narrow RUBS framework.
Impact
The bill amends Colorado Revised Statutes section 6-1-737, which governs disclosure of certain pricing information and landlord-tenant remedies, by adding an express exception for utility cost allocation through ratio utility billing systems. It changes the legal treatment of utility pass-through charges in residential leases by allowing landlords to divide utility bills among tenants under defined conditions, while still barring markups, surcharges, and allocations of common-area utility costs. The measure affects landlords, property managers, and residential tenants by setting disclosure and billing rules for multi-unit housing.
Sentiment
The available context shows no recorded committee testimony or vote details, but the bill advanced through the legislature and was ultimately signed by the governor, indicating it received sufficient support to become law. Its structure suggests a policy compromise: it permits a landlord billing practice that can be useful in multi-tenant properties, while imposing consumer-protection limits to prevent overcharging and to require transparency. Overall, the bill appears to have been treated as a technical but meaningful landlord-tenant measure rather than a highly controversial one in the available record.
Contention
The main policy tension in the bill is between landlord flexibility and tenant protection. Supporters would likely favor allowing ratio utility billing as a practical way to allocate shared utility costs in multi-unit housing, while critics may be concerned that RUBS can obscure actual utility usage or shift costs unfairly to tenants. The bill addresses those concerns by prohibiting markups and fees, excluding common-area costs, and requiring clear disclosure, but the underlying issue of whether landlords should be allowed to bill tenants this way remains the central point of contention.