States/Minnesota/Utility Billing
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Minnesota renter guide

Minnesota Shared-Meter Utility Billing & Allocation Rules

Minnesota § 504B.216 sets detailed rules for utility service in shared-metered residential buildings and treats a third-party billing agent as part of the landlord definition for this section. The billing method matters because submetering and apportionment have different rules.

Last reviewed: August 30, 20262 official sources cited
Apportioned electricityProhibited

Section 504B.216 prohibits apportionment of electricity.

Natural-gas allocationBy unit square footage

The statutory formula uses the unit’s square footage as a proportion of all units.

Water/sewer allocationBy lease occupancy

The formula uses tenants listed on the lease as a proportion of building occupancy listed on leases.

Administrative billing chargeMaximum $8

One administrative billing charge per billing period for all separately billed utilities; the statute caps it at $8.

A tenant can request the underlying provider bills

For apportioned natural gas or water/sewer, the landlord must provide the current actual provider bill on request and qualifying past bills for the preceding two years or since the current landlord acquired the building, whichever period is more recent. The lease or separate notice must list this tenant right.

Common-area utility usage is restricted

For apportioned natural gas, tenants cannot be charged for gas used in common areas, landlord-only spaces or vacant units. For apportioned water and sewer, the statute additionally excludes property-maintenance and shared-amenity usage such as laundry facilities and pools.

Billing fees have explicit caps

The statute allows a single administrative billing charge per billing period for all separately billed utilities, capped at $8. A late payment charge is separately limited by subdivision 9 and cannot be compounded.

2026 final billing rule

The 2026 session added a process for an estimated final utility bill when the actual provider bill is not available by the date the tenant vacates. For apportioned service, the estimate is based on the immediately preceding billing period and prorated for the days between the prior billing period and move-out, with only the statutorily authorized billing or prior-period late charges added.

Documents to compare

  • Lease and required utility-billing attachment or notice.
  • Current tenant bill and prior bills.
  • Current and prior provider bills requested under the statute.
  • Unit square footage for natural-gas allocation.
  • Occupancy counts listed on leases for water/sewer allocation.
  • Administrative billing and late-charge lines.
  • Final-bill calculation if an estimate was used after move-out.

Compare this issue across states

Educational statewide guide. Billing method, lease disclosures, address/delivery instructions, inspections and local rules can change the result. This page is not legal advice.

Official sources

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