Sub-Metering vs. Master Meter: Tenant Utility Rights in NJ

Understanding how utilities are billed in New Jersey apartments is important for renters. Whether you pay for utilities through a sub-metering system or under a master meter, the rules affect what you owe and what your landlord can charge. This article explains your utilities rights as a renter in New Jersey, focusing on sub-metering vs. master meter billing and how to get support if issues arise.

Sub-Metering and Master Meter: What Do They Mean for New Jersey Renters?

In New Jersey, rental housing units often use one of two utility billing systems:

• Sub-Metering: Each apartment has its own private meter, letting tenants pay only for their individual usage.
• Master Meter: The landlord gets one bill for the whole building, and divides these costs among tenants, or pays it as part of rent.

Knowing which setup your home uses will help you understand your payment obligations, your rights to accurate billing, and how to resolve disputes.

Your Rights and Protections for Each System

New Jersey law protects tenants against unfair or inaccurate utility charges, no matter the billing method. The state regulates utility billing and prohibits unfair practices by landlords.

• If your apartment is individually sub-metered, you should receive a separate, itemized bill for your true usage.
• With a master meter, the landlord must follow strict rules when dividing costs, and may only charge actual costs (not extra fees unless allowed by your lease or law). Utilities cannot be shut off for nonpayment of rent, only for actual utility nonpayment. Read more about New Jersey landlord-tenant utility rules.

How Are Utility Bills Regulated in New Jersey?

The New Jersey Board of Public Utilities (NJBPU) oversees utility service and billing for renters. The NJ Office of Landlord-Tenant Information provides guidance about legal billing and the responsibilities of landlords and tenants. State law—especially New Jersey Statutes Title 46 – Property (Landlord and Tenant Law)—sets out the legal ground rules for rental agreements, including utility billing.

Common Problems and How to Address Them

• Unclear or Excessive Charges: NJ law requires all utility charges to be clearly disclosed in your lease and for billing to be transparent.
• Utility Shutoff Risks: Utilities can only be disconnected for specific reasons, and not as retaliation for making complaints or because of rent disputes. Notice is required.^[1]
• No Written Agreement: Utility billing agreements must be in writing, either in your lease or a separate agreement. You can request a written copy from your landlord.

If you think your utility charges are incorrect, you have the right to ask for a breakdown of costs and how they are calculated. If issues continue, you can seek help from the NJ Office of Landlord-Tenant Information or file a formal complaint with the NJBPU.

Official Forms and How Renters Can Use Them

There are official forms and complaint processes available if you have trouble with your landlord over utility billing:

• Utility Complaint Form (NJBPU): This form is used to report problems with utility billing, service shut-offs, or landlord disputes over utilities. For example, if a landlord overcharges for master meter utilities, complete and submit the NJBPU Online Utility Complaint Form. The Board of Public Utilities will review your case and may help resolve improper charges or service interruptions.
• Complaint for the Landlord-Tenant Section (Superior Court of NJ): If you need to formally take legal action (e.g., recover utility overcharges or address habitability issues due to disconnected utilities), use the Landlord/Tenant Complaint Form, CN 11352. This form is typically used in eviction or utility service-related disputes.

Always document your communications and keep copies of your bills or any notices you receive. Acting early and having records helps in resolving your case quickly.

What Should You Do if You Have a Utility Billing Dispute?

Summary: Acting quickly and following proper channels can help solve most billing issues without legal action.

• Contact your landlord in writing and ask for an explanation or breakdown of charges.
• If you don’t get a response or believe charges are still unfair, file a complaint through the official NJBPU Utility Complaint Form.
• If the billing dispute is severe or results in a utility shutoff, seek help and consider filing the Superior Court’s landlord-tenant complaint (CN 11352).

Throughout the process, keep written records and copies of billing statements or communications with your landlord and utility companies.

FAQ: Your Utilities, Sub-Metering, and Tenant Rights in NJ

1. Can my landlord charge me more than the utility provider’s rate if I have a master meter?
   No. New Jersey law prohibits landlords from charging tenants more than the actual cost paid to the utility provider, except where allowed by the lease and within legal limits.^[2]
2. What should I do if my landlord threatens to shut off my electricity or water?
   Utility shutoffs are regulated. If you face a threat of shutoff due to a billing dispute (not for nonpayment of utilities), contact the NJBPU immediately. Retaliatory shutoffs are illegal.
3. How do I know if my utilities are sub-metered?
   Ask your landlord and review your lease. Sub-metered apartments have individually assigned utility meters, and you should receive bills directly tied to your usage.
4. What official tribunal or government agency helps with utility or billing disputes in NJ?
   The New Jersey Board of Public Utilities (NJBPU) and the NJ Office of Landlord-Tenant Information are your main resources.
5. Which state law covers my utility billing rights as a renter?
   New Jersey Statutes, Title 46 (Landlord and Tenant Law) addresses rental utility obligations and protections. Read more in the NJ Landlord and Tenant Act.

Key Takeaways for New Jersey Renters

• Understand if your unit is sub-metered or master metered—this affects how you are billed.
• New Jersey law requires clear, fair, and written utility billing practices.
• If issues arise, use the NJBPU complaint system and keep records of communications or bills.

Being proactive helps resolve most billing problems quickly and protects your rights as a renter.

Need Help? Resources for Renters

• NJ Office of Landlord-Tenant Information – Main resource for rental law and tenant rights
• New Jersey Board of Public Utilities (NJBPU) – File complaints, understand regulations
• NJBPU Utility Complaint Form – Online form for service or billing disputes
• Landlord/Tenant Complaint (CN 11352) – Official NJ court form for formal disputes with landlords
• NJ Statutes Title 46 – Full text of New Jersey landlord-tenant law

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1. NJBPU: Tenant Rights and Utilities
2. NJ Dept of Community Affairs: Truth in Renting Guide

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