Illinois Submetering Laws

Illinois allows landlords and property managers to install submetering systems and bill residents for individualized utility usage.

Residential water and electric submetering, as well as RUBS billing, are all allowed in Illinois. There are some things to be aware of, however.

• Gas submetering is typically prohibited by gas providers’ tariffs.
• RUBS formulas must be disclosed to residents.
• Illinois Statutes Chapter 765. Property §.2 prohibits switching from “from landlord-paid master metered utilities to tenant-paid individually metered utilities or from landlord-paid to tenant-paid utilities” during a lease term.

“No landlord shall request or cause to be effected a change (i) from landlord-paid master metered utilities to tenant-paid individually metered utilities or (ii) from landlord-paid to tenant-paid utilities, regardless of the metering arrangement, during the term of a lease. The landlord shall provide a minimum of 30 days notice to each affected tenant before effecting such a change in service; for tenants under a lease, the notice shall be provided to the tenants no less than 30 days before the expiration of the lease term. This subsection does not prohibit the landlord and tenant from agreeing to amend the lease to effect such a change; the amendment must be in writing and subscribed by both parties”

If you have questions about submetering or RUBS in Illinois, contact us for information about your specific situation.

Starting Submetering in Illinois

It’s easy to implement submetering at multifamily buildings and other property types in Illinois. It’s typically best to contact a utility billing and consulting firm like Synergy to ensure 100% compliance and effectiveness.

Submeters, with individual meters for each unit, can be used in existing buildings or new construction in Illinois. RUBS billing, which divides utility costs according to an industry-accepted formula, is also possible, though not for electricity.

Steps to Implement Submetering in Illinois

Implementing submetering and outsourcing multifamily utility billing is a surprisingly quick process.

• First contact a utility billing specialist like Synergy. You can also request a quick quote on our website.
• We’ll hold an introductory call. If it’s a fit, we’ll then review the site in person (if necessary).
• Our consultants will determine the best mix of service offerings and technology for you, and deliver a formal proposal.
• We then work with industry-leading installers to install submeters and ensure everything is working correctly.
• We handle all aspects of meter reading, resident billing and collections on your behalf.

Utility submetering and outsourced utility billing in Illinois can be implemented in as little as a few weeks, at no net cost to the property owner or manager.