Sub-Metering and Master Meter Rules for North Carolina Renters

Understanding how utilities are billed in your North Carolina rental is essential for knowing your rights and potential responsibilities. Landlords may bill tenants for water, electricity, or gas using either sub-metering (where your unit gets an individual meter) or a master meter (where the landlord divides a total bill among tenants). As a North Carolina renter, knowing the rules, protections, and complaint process can help you protect your budget and resolve issues effectively.

How Utility Billing Works: Sub-Metering vs. Master Meter

North Carolina allows landlords to charge tenants for utilities using two main methods:

• Sub-Metering: Your rental unit has an individual meter and you pay for the amount you use. The landlord (or a billing agent) collects payment for your actual usage.
• Master Meter (Ratio Utility Billing System – RUBS): The whole property is connected to a central meter. The landlord splits the total bill among units, often using factors like square footage or number of occupants.

Your Tenant Rights Under North Carolina Law

The North Carolina Utilities Commission (NCUC) regulates how landlords bill for water, wastewater, and sometimes other utilities. The key rules for tenants include:

• Landlords must disclose billing practices and utility rates in writing before you sign your lease.
• For sub-metering, you may only be billed for your actual consumption, plus a small administrative fee.
• For master meter/RUBS, charges must be calculated fairly, with clear written explanation of the method used.
• Landlords cannot profit from utility charges—they can only recover what the provider charges, plus permitted fees.
• If utilities are billed incorrectly or go unpaid (and are shut off), you have legal remedies and can file a complaint with the NCUC.

These protections are outlined in North Carolina General Statutes Chapter 42: Landlord and Tenant and NCGS Chapter 62, Article 7 – Utilities Regulation.^[1][2]

Key Documents and Forms for Renters

• NC Utilities Complaint Form
  
  • Name: North Carolina Utilities Commission Consumer Statement Form
  • When to Use: If you believe you are being incorrectly billed for utilities or your service is shut off illegally, use this form to file a complaint.
  • How to Use: Complete and submit online or by mail following the instructions on the official NCUC complaint portal.
  • Official Source: North Carolina Utilities Commission Consumer Complaint Page

Always keep copies of complaints and correspondence for your records.

How to Protect Yourself and Take Action

• Review your lease and utility billing disclosures before signing or paying.
• If you notice unclear fees, ask your landlord for a breakdown of charges and the billing method.
• If utilities are shut off illegally or you face an unfair utility bill, gather your documentation (lease, bills, written disputes) and contact the North Carolina Utilities Commission.

For further details, visit the North Carolina Utilities Commission website.

Common Problems and Your Legal Remedies

Sometimes disputes occur when tenants are charged for utilities that are not their responsibility, or when master meter billing seems unfair. North Carolina law emphasizes fairness and transparency from landlords. If problems persist after you’ve raised concerns, the NCUC offers an official complaint process to investigate and enforce the law for renters statewide.

Frequently Asked Questions

1. Can my landlord make a profit on utility charges in North Carolina?
   No. Landlords may only bill you for the actual amount charged by the utility provider, plus small administrative fees permitted by law.
2. What if my lease does not mention utility billing or sub-metering?
   Landlords are required to disclose utility billing details in writing before you sign the lease. If missing, ask for clarification and get it in writing.
3. What do I do if my water or electricity is shut off because of a billing dispute?
   You should immediately contact your landlord to resolve the issue. If not fixed, file a complaint with the North Carolina Utilities Commission using their official complaint form.
4. Is sub-metering allowed in all types of North Carolina rental properties?
   Most multi-unit properties may use sub-metering, but the practice must follow specific rules and obtain NCUC approval. If you have questions, contact the NCUC directly.
5. How are utility charges divided if there is no sub-meter?
   If a master meter is used, landlords must use a fair and reasonable method (like unit size or occupancy) and explain it in writing.

Key Takeaways for North Carolina Renters

• Landlords must disclose and fairly bill for utilities under state law—sub-metering and master meter billing have protections in place.
• If utilities are being billed unfairly or have been disconnected, contact the North Carolina Utilities Commission and file a complaint.
• Keep written records, review your lease, and know you have official avenues for help if issues arise.

Understanding your rights allows you to assert them confidently and helps prevent future disputes with your landlord.

Need Help? Resources for Renters

• North Carolina Utilities Commission (NCUC): Main tribunal for utility complaints, guidance, and consumer protection.
• NC Attorney General: Landlord/Tenant Issues: Guidance for utility and rental disputes.
• NCUC Consumer Complaint Portal: Submit utility billing complaints online.
• North Carolina Housing Coalition: Tenant Resources

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1. North Carolina General Statutes Chapter 42 – Landlord and Tenant
2. NCGS Chapter 62, Article 7 – Utilities Regulation
3. North Carolina Utilities Commission (NCUC)

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