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TEXAS LANDLORD GUIDE

How to allocate utilities in a Texas lease

State which party opens and pays each utility account. Shared meters, internet and service interruptions deserve explicit treatment when applicable.

A utilities clause answers three questions for each service — who opens the account, who pays, and what happens when service is interrupted — and it must respect two Texas rules. Property Code §92.008 forbids a landlord to “interrupt or cause the interruption of” a utility the tenant pays directly, or of water, wastewater, gas or electricity the landlord furnishes, “unless the interruption results from bona fide repairs, construction, or an emergency”; the penalty is the tenant’s actual damages, one month’s rent plus $1,000 and attorney’s fees. And where water is master-metered and allocated among units, Water Code §13.5031 requires the rental agreement to describe the allocation method and state the average bill. The rest depends on the city: in Houston, Dallas or Corpus Christi the tenant chooses a retail electric provider; in Austin, San Antonio, Brownsville or Amarillo there is no choice — the city pages on this site say which.

A clause for each service

UTILITIES CLAUSE — WHAT TO STATE
ServiceStateNote
ElectricityAccount holder; whether the tenant chooses a retail provider or the address is served by a single utility; the outage numberRetail choice depends on the utility territory, not the city name
GasAccount holder; the gas utility; the emergency lineIn a master-metered building the landlord is the customer
Water and sewerAccount holder — usually the tenant for a house, the landlord for many apartments; deposit responsibility; leak reporting dutySome cities hold the owner for a departing tenant’s arrears
Trash and recyclingWhether it rides on the water bill or is separateCity-specific
Internet and cableTenant’s choice and account; landlord permits installation within stated limitsNot a habitability item
Master-metered or allocated waterAllocation method and average unit bill, in the leaseWater Code §13.5031; PUC jurisdiction over overcharges (§13.505)

Interruptions and shut-offs

Write that the landlord may interrupt a service only for bona fide repairs, construction or an emergency, and never for non-payment — the statute says so, and a clause that says otherwise is void under §92.008(g). Add the tenant’s duty to keep tenant-paid accounts active for the whole tenancy, because a house with no power in August is a repair issue the landlord will hear about, and the tenant’s duty to report a service interruption in writing the day it happens.

Turnover

Name the day each account transfers and who reads the meters; the final readings guide has the sheet. Where a city utility requires a copy of the lease to open a tenant account — several Texas cities do — say in the clause that the landlord will supply it.

Frequently asked questions

Can a Texas landlord shut off utilities for non-payment of rent?

No. §92.008 permits interruption only for bona fide repairs, construction or an emergency; a violation costs actual damages, one month’s rent plus $1,000 and attorney’s fees (Property Code §92.008).

What must a lease say about master-metered water?

The method used to allocate the bill among units and the average monthly bill per unit, under Water Code §13.5031; the Public Utility Commission handles overcharge complaints (State Law Library guide).

Does every Texas tenant choose an electricity provider?

No. Choice exists only in the competitive ERCOT territories (Oncor, CenterPoint, AEP Texas, TNMP and, since 2024, Lubbock); municipal utilities and cooperatives such as Austin Energy, CPS Energy, BPUB or CoServ have no provider choice — check the city page for the address.

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.

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.

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