Sub-Metering vs. Master Meter: Michigan Tenant Utility Rights

If you’re renting in Michigan, your utility bills—like water, electric, and gas—may be billed using either sub-metering or a master meter system. Each method affects how you’re charged and what rights and responsibilities you have under Michigan law. It’s important to understand these differences so you can confidently manage utility disputes and protect your finances.

Understanding Utility Metering in Michigan Rentals

Landlords in Michigan can provide utilities in one of two main ways:

• Sub-Metering: Each unit has its own dedicated meter, and tenants receive bills based on their individual usage.
• Master Meter: The entire building or complex shares one (or a few) meters, and the landlord divides costs among tenants or includes utilities in rent.

The metering method determines your rights for access to billing information, dispute resolution, and payment responsibility. Michigan’s Truth in Renting Act and the Landlord and Tenant Relationships Act regulate utility charges and tenant protections.^[1][2]

Sub-Metering: What Michigan Renters Need to Know

Sub-metering means your utility usage is separately measured and billed. Under Michigan law:

• Landlords must disclose utility arrangements—how you’ll be billed—in your lease.
• You are generally only responsible for what you actually use (as measured by your sub-meter).
• If you suspect your meter is faulty or unfairly billed, you have a right to request an inspection from the appropriate utility company or regulatory agency.

If you believe your sub-meter billing is inaccurate, start by asking your landlord for clarification and documentation. For further review, contact the utility provider or the Michigan Public Service Commission, which oversees utility billing practices for issues like gas and electric service.

Master Meter Utilities: Your Rights as a Tenant

With master meter setups, your landlord usually receives the main building’s utility bill. They may include this in your rent or bill you separately using an allocation method (e.g., by unit size or occupancy). Michigan law states:

• The charges and allocation method must be clearly stated in your rental agreement.
• Landlords can’t unfairly overcharge you beyond the total cost of the utility services provided.
• Tenants have the right to request a written breakdown of utility calculations if billed separately.

Billing Disputes and Complaint Steps

If you face high, unexplained charges or shutoff threats:

• Request all billing records and calculations from your landlord.
• Put your concerns in writing, referencing your lease clause on utilities.
• If unresolved, file a complaint with:
  • Michigan Public Service Commission (MPSC) Utility Complaints

Relevant Official Forms for Michigan Renters

• Michigan Public Service Commission Utility Complaint Form
  Used if you believe you’ve been billed unfairly for electric or gas utilities. Complete this form online at the official MPSC complaint portal.
  Example: If your landlord is charging you for electricity when you moved out, submit a utility complaint form through MPSC’s website to initiate an investigation.
• Emergency Energy Assistance Application (DHHS-1171)
  For renters facing disconnection or needing help with past-due utility bills, the DHHS Assistance Application can be submitted via MI Bridges.
  Example: If your heat is shut off in winter, complete the DHHS-1171 and submit through MI Bridges for possible energy assistance.

Who Resolves Landlord-Tenant Utility Disputes?

Michigan’s district courts handle utility disputes related to eviction or billing as part of residential tenancy cases. The Michigan Public Service Commission deals with service/billing complaints for regulated utilities.^[4]

FAQs: Michigan Tenant Utility Rights

1. Can my landlord profit from my sub-metered or master-metered utility bills in Michigan?
   No. Your landlord may only charge you for your share of the actual utilities as billed by the provider. Overcharging is prohibited by law.
2. What if my landlord refuses to provide a breakdown for my utility charges?
   Request the details in writing. If the landlord does not respond, you can file a utility complaint with the Michigan Public Service Commission.
3. How can I dispute an inaccurate utility bill in my rental unit?
   Gather all documentation, contact your landlord, and if unresolved, file a complaint with the MPSC using their official form or contact your local district court if eviction is threatened for nonpayment.
4. Who is responsible if utilities are shut off in a master-metered building?
   Landlords are responsible for paying master-metered accounts unless your lease states otherwise. Tenants still have rights to notice and assistance during shutoffs.
5. Are there utility shutoff protections for renters in Michigan?
   Yes. Shutoff laws require prior notice and provide special protections for vulnerable groups (e.g., during winter or for medical emergencies). Visit the MPSC Shut-Off Protection page for details.

Key Takeaways for Michigan Renters

• Michigan law requires landlords to clearly disclose utility billing methods and actual charges.
• You have the right to fair billing, written explanations for charges, and access to complaint processes.
• If utilities are threatened with shutoff or you believe billing is unfair, act promptly using official complaint forms or seek help from state resources.

Need Help? Resources for Renters

• Michigan Public Service Commission Consumer Assistance – Utility billing complaints and resources
• Michigan District Courts Landlord-Tenant Division – Tenant complaint and eviction procedures
• Michigan Legal Help: Housing – Free legal self-help for tenant rights and disputes
• State of Michigan Tenant Resources – Official government aids and consumer rights

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1. Michigan Truth in Renting Act, 1978 PA 348
2. Landlord and Tenant Relationships Act
3. Michigan Public Service Commission: Utility Shut-Off Protections
4. Michigan District Courts: Landlord-Tenant Information

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