Indiana Water & Wastewater Sub-Billing, RUBS & Admin Fee Rules (2026)

Start by confirming that the statement is a landlord sub-bill

IURC consumer guidance defines a sub-bill as a landlord’s request for payment from a tenant for distribution of water or sewage disposal service that a public or municipally owned utility provides to the landlord. That is different from a direct account where the utility bills the tenant itself.

Save the tenant statement, the lease or utility addendum and any master/provider bill available for the same service period. If a third-party billing company issues the resident statement, the IURC landlord guidance says the landlord remains responsible for compliance with the sub-billing requirements.

Submetered water uses measured unit consumption

For water service measured through a master meter and unit submeters, the amended rule describes an average-cost-per-volume approach: the applicable net water charge is related to the master-metered volume, and the resulting per-volume amount is multiplied by the dwelling unit’s measured volume.

The resident bill should preserve the meter or submeter readings and usage information needed to check the calculation. The rule also prevents aggregate tenant water charges from exceeding the applicable total net water charge.

RUBS and other allocation methods must reasonably allocate the source charge

When water use is not billed from a unit submeter, 170 IAC 15 permits an appropriate method that reasonably allocates the total net water charge. The rule gives examples including per dwelling unit, square footage, type of dwelling unit, number of actual residents and estimated volume distributed to the dwelling unit.

Those examples are not permission to invent a different formula after the fact. Compare the resident statement with the lease/addendum and the actual method the property says it used for that billing period.

Landlord use must be removed and resident collections are capped by the utility charge

For landlord sub-billing, the current rule requires the landlord’s own usage to be deducted from the amount allocated to tenants. IURC landlord guidance likewise says landlords may sub-bill only the amount they are billed by and pay to the water/wastewater utility, less the landlord’s own use.

This makes the master/provider amount, landlord-use treatment and resident allocation pool central evidence for a RUBS review.

A compliant sub-bill contains enough information to audit the charge

• Sub-billing date and rate charged.
• Previous balance and amount of the current sub-bill.
• Tenant usage when applicable.
• Initial setup fee, if any.
• Reasonable administrative fee, if any.
• Beginning and ending service dates.
• Required complaint notice and contact information.
• Indication when a bill or usage amount is estimated.
• Submeter readings when the property uses submeters.
• Due date plus tenant and unit identification.

The administrative fee and late-fee rules are separate from water usage

The IURC landlord handout says a reasonable administrative fee may be charged but may not exceed the statutory limit of $4. Keep that fee outside the measured or allocated water/sewer amount when reconciling the bill.

The same guidance says late fees are not permitted on sub-bills. Other fees are permitted only when they are for separate services and are separately itemized. A differently labeled fee should therefore be reviewed by its actual service and lease basis rather than silently folded into the water rate.

Sub-bills need consistent frequency and a minimum payment period

Current IURC guidance says sub-bills must be sent with a consistent frequency and must allow at least 17 days for payment. The amended rule states that at least 17 days must run from the date the landlord or association sends the sub-bill before initiating a collection action for the sub-billing charges.

Record the sent date, due date and any collection or ledger event if timing is part of the dispute.

Indiana provides an IURC review path for alleged incorrect sub-billing

The IURC customer-assistance page says the Commission can review billing history and information from the utility, owner and affected customer when a tenant believes sub-billing is incorrect under IC 8-1-2-1.2.

Before escalating, organize the exact service dates, bill, meter or allocation method, provider/master amount, fee lines and correspondence so the disputed component is identifiable.

Do not apply this water/wastewater rule to electric or gas automatically

The IURC landlord sub-billing materials are expressly labeled for water and wastewater only. An apartment electric or gas bill can involve a different utility, meter arrangement, tariff or legal framework.

If the disputed statement includes multiple utilities, separate the water/sewer lines before using this Indiana source layer.

Records worth gathering for an Indiana water/sewer sub-billing review

• Current and prior resident sub-bills.
• Lease and utility/RUBS/submetering addendum.
• Master/provider water and wastewater bills for the matching period, when available.
• Beginning and ending submeter readings when used.
• RUBS/allocation formula, total allocation units and household inputs.
• Calculation of any landlord-use deduction.
• Separate setup, administration and other service fees.
• Sent date, due date and any collection notice.
• Third-party billing-company correspondence and property-management responses.

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