A recent decision by the Connecticut Supreme Court could have a big impact on how landlords of multifamily/multiunit properties charge tenants for utilities. In Northland Inv. Corp. v. Pub. Utils. Regul. Auth. (SC 201769), the Court determined that Ratio Utility Billing (“RUB”) is prohibited in Connecticut. The Court found that RUB –a practice where a residential landlord applies a variable formula to assess the proportionate utility consumption of tenants in master-metered multiunit residential properties– was violative of Connecticut General Statutes section 16-262e(c). However, a master-meter may still be utilized provided the “building-in” method is applied whereby a landlord factors the projected costs of utility consumption directly into a tenant’s monthly rent. The Court found this methodology adequately provides the tenant with a consistent and predictable payment obligation.
Carmody’s Real Estate practice group is happy to answer any questions you may have regarding the impacts of this decision.
For further information, please contact:
Patrick J. Hanna
203.252.2667
phanna@carmodylaw.com