The Virginia Submetering Statute for Multifamily Properties
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Virginia's submetering statute sets the rules for installing equipment, billing residents, and disclosing charges. Here is what the statute requires.
What does the Virginia submetering statute require?
The Code of Virginia (Section 55.1-1212) governs how residential properties submeter and allocate water, sewer, and energy charges, and State Corporation Commission rules (20 VAC 5-305) govern electric and gas submetering. Together they cover equipment, billing practices, and resident disclosures. Residents are billed for their measured use at the utility's average cost (the master bill divided by total measured use), and an owner may add a disclosed billing or administrative fee that covers actual costs.
Yes. Submetering is allowed in Virginia, with some restrictions.
It is set by Virginia SCC rules, and NES handles the requirements for you.
Overview of the statute
The Virginia submetering statute (Code of Virginia Section 55.1-1212) governs energy submetering, water and sewer submetering, and ratio billing in residential buildings. It requires the billing to be clearly stated in the rental agreement and sets out what owners may charge, so utility cost is allocated fairly and transparently.
System installation and compliance
Submetering systems must be installed and maintained in line with state and local rules. Owners are responsible for keeping the meters accurate, which is why most partner with a submetering company rather than carry the compliance burden in-house.
Billing and resident disclosures
Residents are billed for their unit's measured use at the utility's average cost per unit, with no markup on the utility (20 VAC 5-305-90). An owner may add a billing or administrative fee that covers actual costs, such as a monthly billing fee or a setup or move-out fee, when it is disclosed in the lease (Code of Virginia 55.1-1212), and residents are billed for the same period as the serving utility unless the lease expressly says otherwise.
Virginia state rules
- Submetering of electricity, natural gas, and water and sewer is allowed in Virginia: SCC rules (20 VAC 5-305) cover electric and gas submetering, and Virginia Code 55.1-1212 covers residential buildings, including water and sewer
- For electricity and gas, residents are billed only for what their unit uses, at the utility's average cost per unit, with no markup on the utility itself (20 VAC 5-305-90), and water and sewer charges are passed through the same way
- The owner may add a service charge for billing and administration, such as a monthly billing fee or account setup or move-out fee, to cover actual costs when it is stated in the lease (Virginia Code 55.1-1212 and 56-245.3)
- Residents are billed for the same period as the utility serving the building, unless the lease expressly says otherwise (Virginia Code 55.1-1212)
- From July 1, 2027, owners must keep a written description of how utility billing fees are calculated and a per-resident history of fee payments, and give residents an itemized utility statement, including the allocation method, within 10 business days of a written request (2026 amendments to Virginia Code 55.1-1212 and 55.1-1209)
- Late fees on utility bills are capped at $5.00
- NES tracks the current Virginia SCC requirements so your property stays compliant
Local rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.
Official sources: Virginia SCC · 20 VAC 5-305-90 · Va. Code 55.1-1212 · Va. Code 56-245.3
General information only, not legal advice. Confirm current rules with the Virginia SCC or a qualified attorney.
Virginia submetering law
Stay compliant in Virginia.
NES installs the meters, bills your residents, and tracks the Virginia rules so your property stays clean. Send your details for a free, no-obligation estimate.