Indiana Tenant Rights: Sub-Metering vs. Master Meter

If you're renting in Indiana, you might wonder why your utility bills look the way they do—or why your electricity or water costs seem higher or lower than neighbors. This often comes down to whether your building uses sub-metering or a master meter system. Understanding these terms and your rights can help you handle utility billing issues confidently. Here, we break down what Indiana law says and what you can do if you have concerns.

What Is the Difference Between Sub-Metering and Master Metering?

Sub-metering means each rental unit has its own meter, so you pay only for the utilities you actually use. Master meter systems have one main meter for the entire property, and the landlord or property owner splits the bill among tenants, sometimes using a formula or 'ratio utility billing system (RUBS)'.

• Sub-metering: Your unit has its own meter; you pay for your measured consumption.
• Master Metering: Building has one main meter; the landlord divides the bill based on square footage, occupancy, or another method.

Your Utility Billing Rights Under Indiana Law

Indiana law doesn't directly regulate how landlords divide utility bills, but it does protect renters in several key ways. Utility service must remain safe, and billing methods must be clear in your lease agreement. According to the Indiana Code Title 32, Article 31, Landlord-Tenant Relations, landlords must:

• Disclose how utilities are billed in your lease.
• Not overcharge beyond the actual costs paid to the utility provider.
• Provide documentation of utility charges if you request it in writing.

If utilities are included in rent or billed separately, this must be made clear at the start of your tenancy. Sudden changes in billing or excessive charges could be challenged, especially if they're not in your lease.

If You Suspect Incorrect or Unfair Billing

If you think you're being overcharged or your lease doesn't match how you're billed, talk to your landlord first to resolve the issue. If issues persist, you can:

• File a complaint with the Indiana Office of Utility Consumer Counselor (OUCC)
• Seek mediation or legal advice

Indiana does not have a dedicated housing tribunal, but rental disputes can be taken to your local small claims or civil court. If utilities are shut off unlawfully, you may have rights to damages under IC 32-31-5.

Important Forms for Indiana Renters

• Tenant Complaint Form (Utility Issues): Indiana does not have a standardized statewide tenant-landlord complaint form, but the OUCC Utility Complaint Form lets you file utility complaints (water, electric, gas) if you believe you're being overcharged or your service is unfairly disrupted.
  Example: If your landlord refuses to provide an itemized utility bill, complete the OUCC Utility Complaint Form online or by mail to start an investigation.

Always keep copies of communications and bills for your records, as you may need them in a dispute.

How Sub-Metering and Master Metering Affect You

Each billing method comes with pros and cons—transparency, predictability, and fairness depend on clear agreements and state protections.

• If you have sub-metering, review your usage, billing cycle, and statements. Make sure meter readings match the bill.
• For master metered properties, ensure the landlord uses a fair and clearly-explained formula, and does not charge more than their cost.

What to Do if Your Utilities Are Shut Off

Under Indiana law, landlords cannot legally shut off your utilities to force you to move or punish you for nonpayment of rent. If this happens, you can file a claim in small claims court and may be entitled to damages. See IC 32-31-5 for details.

FAQ: Indiana Sub-Metering and Master Metering

1. Can my landlord charge more than the utility company for my services?
   No, by law, landlords may not charge more than the cost charged by the utility provider unless clearly stated in your lease.
2. What should I do if I think my meter readings or charges are wrong?
   Request a written breakdown from your landlord. If not resolved, file a complaint with the Indiana OUCC.
3. Is my landlord allowed to change utility billing methods during my lease?
   Changes to billing methods should be agreed upon in writing and cannot be enforced mid-lease without your consent.
4. What if my utilities are turned off due to the landlord's nonpayment?
   You may seek legal remedies, including possible damages, by filing a claim in small claims court.
5. Where can I get help understanding my rights?
   Contact the Indiana OUCC or a local legal aid service for support and resources.

Key Takeaways for Indiana Renters

• Know whether your building uses sub-metering or a master meter; clarify this in your lease.
• Landlords must bill you transparently and cannot overcharge for utilities.
• If you have billing issues, you can file a complaint using the Indiana OUCC Utility Complaint Form.

Understanding your utility billing will help you avoid unexpected costs and protect your rights as an Indiana renter.

Need Help? Resources for Renters

• Indiana Office of Utility Consumer Counselor (OUCC) – File utility complaints and get information on tenant utility rights.
• Indiana Court System – Guidance on filing small claims if you face disputes over utilities or billing.
• Indiana Legal Services – Free or reduced-cost legal help for qualified renters.
• Indiana Landlord-Tenant Law – Full legislation text outlining renter and landlord responsibilities.

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1. Indiana Code Title 32, Article 31, Landlord-Tenant Relations
2. IC 32-31-5 – Tenant Remedies; Illegal Utility Shutoff
3. Indiana Office of Utility Consumer Counselor (OUCC)
4. OUCC Utility Complaint Form
5. Indiana Judiciary – Find My Local Court

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