Final readings allocate the last bill between the outgoing tenant, the vacancy and the incoming tenant, and they answer a question some Texas cities ask the owner directly — in Amarillo, for instance, the water ordinance holds the landlord to account for a departing tenant’s leakage arrears before serving the next tenant. Photograph every meter on the surrender day with the date visible, write the readings on the key receipt, and send them to the utility with the close-out request. Under Property Code §92.104 unpaid utilities the tenant owed under the lease are a lawful deduction from the deposit; the reading is the proof of the amount.
The readings sheet
| Meter | Reading | Photo | Account holder | Close-out date |
|---|---|---|---|---|
| Electricity (kWh) | Tenant / landlord | Tenant closes effective surrender; landlord reopens the day after | ||
| Gas (CCF) | ||||
| Water (gallons / cubic feet) | City account holder | City may require the lease for the next account | ||
| Sub-meters (if allocated water) | Landlord | Allocation under Water Code §13.5031 |
Using them
- Compare the reading with the last bill’s reading to estimate the final consumption; a large jump is a leak to investigate before the next tenant.
- If the tenant’s account closes on surrender, the utility bills the tenant; keep the reading in case of a dispute.
- If the landlord’s account carried the service, calculate the tenant’s share by reading and bill it through the deposit accounting with the arithmetic shown.
- Give the incoming tenant the same readings on their move-in record; consumption from possession is theirs.
Master-metered buildings
Where the landlord allocates water among units, the rental agreement must describe the method and state the average unit bill (Water Code §13.5031); the final allocation for a departing tenant follows that method and is itemised in the deposit accounting. The Public Utility Commission has jurisdiction over allocation complaints.
Frequently asked questions
Can unpaid utilities be deducted from a Texas security deposit?
Yes, where the tenant owed them under the lease — itemised with the reading and the bill as evidence (Property Code §92.104).
Why photograph the meters?
The dated photograph proves the reading on the surrender day, which allocates the last bill and shows any leak before the next tenant.
How is water allocated in a master-metered building?
By the method the rental agreement describes under Water Code §13.5031, with the average unit bill stated; the same method applies to the final allocation (State Law Library guide).
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- Texas State Law Library — Landlord/Tenant Law research guide ↗
- Texas State Law Library — Utility shutoffs ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.