Cal. Civ. Code § 1.2
Certain tenant-paid utility payment arrangements prohibited; Notice of change in payment arrangement
Operative Text
Certain tenant-paid utility payment arrangements prohibited; Notice of change in payment arrangement. (a) No landlord shall rent or cause to be rented any unit in which the tenant is responsible by agreement, implication, or otherwise for direct payment for utility service to the utility company and in which the utility company billing for that service includes any service to common areas of the building or other units or areas used or occupied by persons other than the individual tenant and those occupying the unit with the tenant on the utility account, unless, before offering an initial lease or a renewal lease, accepting a security deposit, or otherwise entering into an agreement with the prospective tenant to let the premises: (1) The landlord provides the prospective tenant with a written statement setting forth the specific areas of the building and any appurtenances that are served by the meter that will be in the tenant's name and the nature of the utility uses of those areas, including any that have not been reflected in past utility company billings but that may arise (such as the rental of a neighboring unit that has been vacant, the installation of washers and driers in the basement, or the use of the garage for mechanics); (2) The landlord provides the prospective tenant with copies of the utility bills for the unit for the previous 12 months, unless waived by the tenant in writing; (3) The landlord neither suggests nor requires the tenant to collect any money for utility bills from neighboring tenants whose utility usage will be reflected in the prospective tenant's utility company billings; and (4) The landlord sets forth in writing the amount of the proposed rent reduction, if any, that is offered to compensate for the tenant's payments for utility usage outside of the tenant's unit. (b) No landlord shall request or cause to be effected a change (i) from landlord-paid master metered utilities to tenant-paid individually metered utilities or (ii) from landlord-paid to tenant-paid utilities, regardless of the metering arrangement, during the term of a lease. The landlord shall provide a minimum of 30 days notice to each affected tenant before effecting such a change in service; for tenants under a lease, the notice shall be provided to the tenants no less than 30 days before the expiration of the lease term. This subsection does not prohibit the landlord and tenant from agreeing to amend the lease to effect such a change; the amendment must be in writing and subscribed by both parties. (c) Any term or condition in a rental agreement between the landlord and the tenant that is inconsistent with this Section is void and unenforceable. (d) Nothing in this Section affects the relationship between a utility company and its customers.
Under 765 Ill. Comp. Stat. 735 § 1.2, landlords are prohibited from placing tenants on utility accounts that also cover common areas or other units unless specific disclosures are made before any lease is signed or deposit is accepted. These disclosures include a written description of all areas on the tenant's meter, copies of the prior 12 months of utility bills (unless the tenant waives this in writing), and a written statement of any rent reduction offered to offset the shared utility costs. Additionally, landlords cannot shift utility payment responsibility from landlord-paid to tenant-paid arrangements mid-lease without at least 30 days' written notice, and any lease term that conflicts with this section is void and unenforceable.
Plain English — not legal advice.
Operators subject to 765 Ill. Comp. Stat. 735 § 1.2 generally ensure that before any lease is offered or deposit accepted, prospective tenants receive a written breakdown of all areas served by the meter that will be in their name, along with 12 months of prior utility bills unless the tenant waives that requirement in writing. Compliant landlords do not ask or require tenants to collect utility payments from neighboring tenants, and they document in writing any rent reduction intended to offset the tenant's costs for utility usage beyond their own unit. When transitioning from landlord-paid to tenant-paid utilities, operators provide at least 30 days' advance written notice and, for lease-term changes, do so only through a written amendment signed by both parties.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 735 § 1.2, tenants have the right to receive detailed written disclosures about shared meter arrangements and prior utility bills before signing a lease, and any lease clause that strips away these protections is void and unenforceable. If a landlord attempts to shift utility payment responsibility mid-lease without the required 30-day notice or a properly signed written amendment, that change may not be legally effective. Tenants who believe this provision has been violated may consider raising it as a defense in a lease dispute, filing a complaint with a local housing authority, or reaching out to a tenant-rights organization familiar with Illinois landlord-tenant law for general information about available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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