Skip to main content

Submetering Apartments in Illinois

Last reviewed by Grant Forehand, Compliance Officer · September 2026

NES submeters apartment communities across Illinois, with in-house installers, daily meter reads, and a bilingual billing team.

NES submeters apartment communities in Chicago, Naperville, Rockford, Springfield, Peoria, and other areas across Illinois. The key here is disclosing how and what you bill in the lease. We handle the install, the reads, and resident billing so the numbers are clean and the documentation is in order.

15-30%
lower water use once residents are billed
12-18 mo
typical payback on an install
Daily
meter reads, so leaks show up fast
Quick answer

Is submetering apartments legal in Illinois?

For water, yes. Illinois has no statute written just for water submetering, so the lease sets the terms, and when an owner splits a master-metered bill the Tenant Utility Payment Disclosure Act (765 ILCS 740/5) requires a written allocation formula, a total no higher than the utility's bill, and a copy of the bill on request. Electricity is different: ComEd and Ameren Illinois tariffs prohibit reselling or redistributing power to residents, apart from narrow grandfathered buildings, and buildings permitted since November 1, 1981 need a utility meter in each unit. The major gas utilities' tariffs prohibit gas submetering too. From January 1, 2027, any required fee must appear on the first page of the lease. NES tracks every requirement so your property stays compliant.

Why apartment owners in Illinois submeter

  • Residents pay for what their unit uses, so water consumption usually drops 15 to 30 percent.
  • Leaks get caught fast instead of showing up on the next month's bill.
  • Common-area water is measured on its own, so it stays off resident bills and you can see exactly what it costs.
  • Most apartment installs pay for themselves within 12 to 18 months.

What submetering is

Submetering puts a meter on each apartment and bills residents for the water, gas, and electric they actually use. The idea has been around since the 1920s. Today’s meters read wirelessly every day, so usage is accurate and leaks show up fast instead of on the next bill.

Rules & compliance

Apartment submetering rules in Illinois

Water submetering is in wide use across Illinois. When a master bill is allocated, residents get the written formula and the total billed cannot exceed the utility's charge. Water RUBS is allowed with a written formula, while ComEd, Ameren, and the major gas utilities prohibit reselling electricity or gas to residents.

Governing rules: 765 ILCS 740 & 735 · ICC-approved utility tariffs
  • Illinois has no statute written just for water submetering, so the lease sets the terms. When an owner splits a master-metered utility bill among residents, the Tenant Utility Payment Disclosure Act (765 ILCS 740/5) requires the allocation formula in writing, in the lease or a separate agreement, covering everyone who uses the service. The total can't exceed the utility's bill, and residents can ask for a copy of it
  • Owners cannot switch residents from landlord-paid to tenant-paid utilities during a lease term unless both sides sign a written lease amendment, and must give at least 30 days' notice before the lease ends (765 ILCS 735/1.2)
  • Electricity can't be resold or redistributed to residents in ComEd or Ameren Illinois territory, by submeter or by formula, apart from narrow grandfathered buildings, and units in buildings permitted since November 1, 1981 must have their own utility meter (83 Ill. Adm. Code 410.130)
  • The major gas utilities (Peoples Gas, North Shore Gas, Nicor Gas, Ameren Illinois) prohibit submetering gas for resale in their tariffs, and Nicor and Ameren also bar charging residents separately for gas
  • Starting January 1, 2027, every required fee, including any utility billing fee, must be listed on the first page of the lease, and listings must say whether utilities are included in rent (Public Act 104-0479)
  • Electric and gas service is overseen by the Illinois Commerce Commission, and NES tracks the current requirements

Local rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.

Official sources: Illinois Commerce Commission · 765 ILCS 740/5 (Tenant Utility Payment Disclosure Act) · 765 ILCS 735/1.2 (Rental Property Utility Service Act) · 83 Ill. Adm. Code 410.130 (individual electric meters) · Public Act 104-0479 · Chicago Heating Cost Disclosure Rules (Municipal Code Ch. 5-16)

General information only, not legal advice. Confirm current rules with the Illinois Commerce Commission or a qualified attorney.

Coverage

Cities NES submeters apartments in Illinois

  • Chicago
  • Naperville
  • Rockford
  • Springfield
  • Peoria

NES serves communities across Illinois. If your city is not listed, we very likely cover it.

Properties NES submeters

  • Apartment communities
  • Condominiums
  • Townhomes
  • Mobile home parks
  • Student housing
  • New construction and existing properties

NES specializes in multifamily properties with 80 or more units.

Common questions

Submetering apartments in Illinois

For water, yes. Illinois has no statute written just for water submetering, so the lease sets the terms, and when an owner splits a master-metered bill the Tenant Utility Payment Disclosure Act (765 ILCS 740/5) requires a written allocation formula, a total no higher than the utility's bill, and a copy of the bill on request. Electricity is different: ComEd and Ameren Illinois tariffs prohibit reselling or redistributing power to residents, apart from narrow grandfathered buildings, and buildings permitted since November 1, 1981 need a utility meter in each unit. The major gas utilities' tariffs prohibit gas submetering too. From January 1, 2027, any required fee must appear on the first page of the lease. NES tracks every requirement so your property stays compliant.

See what your Illinois apartments can recover.

Send us your master-meter bills and unit count. We’ll run the numbers on your actual property and reply within one business day with a clear, no-obligation estimate.

Free assessment

Get a free bid for your property

Live at a property NES bills?

By submitting, you agree to our terms and privacy policy and to calls, texts, and emails from NES about your request, including automated ones; consent is not a condition of purchase, msg & data rates may apply, and you can reply STOP to opt out. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.