Utilities and insurance: who pays for what

Electricity, gas and heating oil

Under 105 CMR 410.200, the owner provides the electricity or gas used in each unit unless two things are true: the meter serves only that unit, and a written rental agreement says the tenant pays. If one meter serves more than one unit, the owner pays. Heating oil follows the same pattern under 410.210: the tenant can be asked to buy oil only if the unit has its own tank and the written agreement says so.

The tenant must have access to the unit’s electrical panel, apart from a narrow exception for buildings where the owner pays for electricity and provides access through continuous building management.

In many towns electricity and gas come from two different utilities, and some towns have a municipal light department. A tenant who pays should open accounts to start on move-in day. Common-area meters, such as hallway lights or a shared boiler, stay in the owner’s name.

For short leases, some owners keep every account in their own name and set a rent that includes utilities. That is simpler than asking a tenant to open and close accounts for a few months.

Water and sewer

Water is the owner’s cost by default. Chapter 186, section 22, allows an owner to bill a tenant for water and sewer only after meeting every one of these conditions. Many older multi-family buildings cannot meter units separately, which is why water is so often included in the rent.

• A licensed plumber installs a submeter for each unit that measures only that unit’s water
• The unit has low-flow fixtures: showerheads up to 2.5 gallons per minute, faucets up to 2.2 gallons per minute, toilets up to 1.6 gallons per flush
• The owner files a certificate with the local board of health, signed under the pains and penalties of perjury, with the plumber’s certification attached, and gives the tenant a copy
• Billing starts only with a new tenancy, under a written agreement that sets out the submetering and billing details
• Water service cannot be shut off for unpaid water charges, and the tenant may check the submeter

Heat, hot water and service shutoffs

Whoever pays for the fuel, the owner must keep the heating system and the water heater working. From September 15 through May 31, heated rooms must reach at least 68°F from 7:00 a.m. to 11:00 p.m. and 64°F overnight, never above 78°F. Hot water must be delivered at 110°F to 130°F, and at 110°F to 120°F for a tub or shower.

Under c.186 §14, an owner who willfully fails to furnish heat, hot water, water, gas or electricity that the owner is obligated to provide, or who transfers responsibility for paying a utility to the tenant without the tenant’s knowledge or consent, faces a fine and can owe the tenant actual damages or three months’ rent, whichever is greater. If a bill goes unpaid, deal with it through the lease, not the meter.

Trash and snow

In a building with two or more units, the owner pays for trash collection and disposal. In a single-family home, the occupant does. In towns with a pay-as-you-throw bag program, the occupant buys the bags. The owner supplies enough covered receptacles in every case.

In a multi-unit building, the owner keeps common exits clear and keeps exterior stairways, fire escapes and egress balconies free of snow and ice. A tenant is responsible for snow and ice on exits under their exclusive use only when a written rental agreement clearly says so. If you want the tenant of a house to shovel the steps and walk, put it in the lease. City sidewalk rules, such as Boston’s three-hour rule, are covered in the rental calendar guide.

Insurance on both sides

Tell your insurer the home is rented and confirm the policy fits a rental. An owner’s policy protects the owner’s building or unit and the owner’s liability; it is not written to cover a tenant’s furniture, electronics or clothing. In a condominium, the association’s master policy covers what the bylaws assign to it, and the unit owner insures the rest; read the documents with your agent.

Renters insurance is the tenant’s own policy. According to the City of Boston, it can cover the tenant’s belongings against risks such as fire, theft and vandalism, protect the tenant if they accidentally damage the rental or a visitor is injured, and help with temporary housing if the unit becomes unlivable. Many leases ask the tenant to carry it and show proof at move-in; it protects both sides when something goes wrong.