Shared Utilities in a California ADU Lease

When an ADU and main home share meters, a one-line utility clause leaves the most important questions unanswered. The agreement should identify every shared service, the account holder, the allocation method, the billing documents available to the tenant, and the payment deadline.

The clause should describe what actually exists at the property. Do not promise a separate meter if the device is only a private submeter, and do not call a monthly amount a direct utility bill when it is reimbursement to the landlord.

Common approaches include a fixed monthly amount, a percentage of the provider bill, an occupancy-based formula, or a reading from a private submeter. The best method is one that can be calculated consistently and verified from records.

• · Name each utility covered by the formula.
• · State the exact percentage, amount, or calculation inputs.
• · Explain how vacancies in the main home or ADU affect the calculation.
• · State whether common-area usage is included.
• · Provide a reasonable time to inspect the underlying bill.

California Civil Code section 1940.9 addresses situations in which a gas or electric meter serves both a tenant’s dwelling and another area. Depending on the arrangement, the landlord must disclose that fact and reach a written agreement about responsibility for the shared service.

Because the statute is arrangement-specific, the safest workflow is to map which fixtures and areas each meter serves before drafting the clause. A utility addendum cannot cure an inaccurate description of the physical setup.

A good shared-utility section should be understandable without an oral explanation. Attach a sample calculation if the formula is not obvious, and keep copies of provider bills used to calculate reimbursement.

• · Services and meters covered
• · Account holder and bill recipient
• · Allocation formula and worked example
• · Billing frequency and due date
• · Access to supporting statements
• · Procedure for correcting an error
• · Treatment of new services or rate-plan changes