Virginia Submetering Laws for Water, Gas, and Electric
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Virginia permits submetering of water, gas, and electric in multifamily properties when the lease allows it. Here is what each utility requires.
Is submetering legal in Virginia?
Yes. Virginia permits submetering of water and sewer, gas, and electric in multifamily properties. SCC rules (20 VAC 5-305) govern electric and gas submetering, and Va. Code 55.1-1212 covers residential buildings, including water and sewer. Starting July 1, 2027, owners must also keep a written description of how utility billing fees are calculated, a per-resident fee history, and provide an itemized utility statement on written request (2026 amendments to 55.1-1212 and 55.1-1209). Residents are billed for their unit's measured use at the utility's average cost per unit (the master bill divided by total measured use), with no markup on the utility itself, and the lease has to allow the billing. Ratio or formula-based billing is also allowed when the lease provides for it.
Yes. Submetering is allowed in Virginia, with some restrictions.
It is set by Virginia SCC rules, and NES handles the requirements for you.
What Virginia allows, by utility
- Water and sewer, gas, and electric submetering are all permitted (20 VAC 5-305 for electric and gas, Va. Code 55.1-1212 for residential buildings)
- The lease must allow the billing, for every utility
- Ratio or formula-based billing is also allowed when the lease provides for it
- Residents are billed at the utility's average cost per unit (the master bill divided by total measured use), with no markup on the utility
What this means for owners
Virginia is workable for multifamily owners: you can recover utility cost across water, gas, and electric as long as the lease discloses the billing and you do not mark up the utility. Because requirements change and can vary by county, confirm the current rules before you start, or have NES verify them for your address.
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.