Colorado utility billing and RUBS rules
Many Colorado buildings are master-metered and split utility bills with a ratio utility billing system (RUBS). HB25-1090 limits what landlords may bill, and the Attorney General has said how it will treat RUBS.
Last reviewed November 1, 2026 against Colorado HB25-1090 (C.R.S. 6-1-737) and the sources below · How we check facts
The rule
A landlord may not require a tenant to pay more for utilities than the provider charged, except for a fee of at most 2% of the bill or at most $10 a month, one or the other, and only if the lease allows it. Common-area utilities may not be passed on.
The Attorney General's RUBS safe harbor
In December 2025 the Colorado Attorney General said it will not bring enforcement actions against landlords who allocate utilities with RUBS when all four conditions are met:
- No overbilling. The total billed to all tenants does not exceed what the provider charged for the property.
- Limited fee. Any administrative fee stays within the 2% or $10 cap.
- No common areas. Common-area and shared-facility utilities are left out of the allocation.
- Disclosure. The allocation method is disclosed clearly in the lease.
Utilities and the advertised Total Price
Actual utility usage billed by the provider does not have to be inside the advertised Total Price. Say in the ad that utilities are billed separately and vary each month.
Example ad line: Total price $1,310/month (rent and all required fees). Water, sewer and trash billed separately by a disclosed formula; amounts vary monthly.
Fee calculator
The cap is one or the other: a fee of up to 2% of the bill, or a fee of up to $10 a month. Not legal advice.
Frequently asked questions
Is RUBS legal in Colorado?
The Attorney General said it will not pursue landlords using RUBS when tenants are not billed more than the provider charged, common areas are excluded, any fee is within the 2% or $10 cap, and the method is disclosed in the lease.
Can I charge a utility admin fee in Colorado?
Yes, but at most 2% of the bill or at most $10 a month, one or the other, and only if the lease allows it.
Do utilities go in the Colorado Total Price?
Actual usage billed by the provider can be shown separately, with a note that it varies.
Related
Not legal advice. Confirm your lease with an Illinois attorney.