Create Your Landlord-Tenant Utility Agreement Without Hiring Lawyers

Standardized Legal Documents Create Your Landlord-Tenant Utility Agreement Without Hiring Lawyers

Write a Top-Level Landlord-Tenant Utility Agreement With Ease

One of the crucial aspects of any landlord-tenant relationship is dividing utility costs between the parties. It can be regulated by signing a specific legal document that will state all the related agreed-upon terms.

If you need some assistance in writing your landlord-tenant utility agreement, this guide is all you need! Find out what this contract serves for and what elements it should contain. We will also share a tip or two for creating contracts instantly with DoNotPay’s practical Standardized Legal Documents feature.

What Is a Utility Agreement Between a Landlord and a Tenant?

A utility agreement is a legal document that usually goes hand in hand with a lease or rental agreement. Its purpose is to determine which party should pay for the utilities related to the leased property or how the costs should be divided between the landlord and tenant. The parties can create the agreement as a separate contract or add a utility addendum to the existing tenancy agreement.

Steps To Take Before Creating a Utility Agreement or Clause

Once the parties decide to enter a utility agreement or add a special amendment to the primary lease agreement, they should:

  1. Discuss the utility costs with the landlord before they sign a lease or rental agreement—The tenant must know what utility services exist on the property and be aware of all specific policies related to expenses and billing. The best bet is to ask the property owner:
    1. What costs the tenant would be responsible for
    2. Which expenses the landlord should pay
    3. What the penalties for late fees would be
    4. If there are any outstanding utility charges
    5. How the landlord calculates the tenant’s portion of the utilities
  2. Consider shared utility arrangements when deciding how to divide the expenses—The parties may want to contact a submetering company and have water submeters installed in each unit. The landlord can also install separate gas or electric meters. This type of division is mandatory in some U.S. states

What Parts Should a Utility Agreement Consist Of?

Most state laws don’t have specific regulations related to utility agreements or utility clauses within residential lease agreements. These are usually short documents that contain only a few sections, which are described in the following table:

General informationThe introductory part of the contract should cover:

  • Names of the landlord and tenant
  • Full address of the leased property
Payment detailsThe middle section serves to describe the way utility bills will be divided between the parties. It should include all types of related costs, including:

  • Gas
  • Heat
  • Water
  • Internet
  • Electricity
  • Cable TV
  • Telephone
  • Garbage and waste removal
  • All other existing utilities

The contract should determine the party who provides the service and the exact percentage of the expenses that each signing entity should pay for all utilities

ConclusionThe parties should leave some space for the signatures and the date of signing at the end of the document

The signers can modify this structure according to their personal needs or add any other section they consider significant to the contract.

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Writing a lease agreement or any other type of contract can be quite challenging and overbearing. Besides taking care of legal terminology and necessary elements to include, you must ensure your document complies with all governing laws in the state. Online contract templates may seem like an acceptable solution, but they don’t always cover all the specific details you want to define.

Forget about administrative hurdles and failed drafts—with DoNotPay, drawing up any kind of legal documents becomes a walk in the park! We can help you create an unlimited number of personal, business, or real estate contracts without lifting a finger. Each document we make is personalized to match your needs and based on applicable local regulations!

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To use this service, follow the instructions below:

  1. Sign up for DoNotPay and log in to your account
  2. Enter the name of the document you want to create in the search field
  3. Complete our chatbot’s brief questionnaire to help us complete your contract

Our system will generate a customized legal document ready for printing and signing! If it needs to be notarized, you can use the same app to book an appointment with a remote notary. This way, you will complete the procedure fast and hassle-free! The notary will notarize your contract via a video call by providing a digital stamp and signature.

What Contracts Can DoNotPay Help You Create?

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Do you need an agreement that isn’t on our list? No worries—our document database keeps growing! In the meantime, you can use our knowledge base to get instructions for making numerous commonly used contracts, such as:

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