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SB 294

Va. Residential Landlord & Tenant Act; submetering, energy allocation, & ratio utility billing sys.

2026 Regular Session Introduced by Lashrecse Aird

SB 294 establishes regulatory standards for landlord utility submetering and ratio billing in Virginia rentals to prevent tenant overcharging while managing landlord cost-recovery methods.

Approved by Governor-Chapter 784 (effective 7/1/2026)
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Bill Summary · SB 294

Legislative bill overview

SB 294 modifies Virginia's Residential Landlord and Tenant Act to regulate submetering, energy allocation, and ratio utility billing systems in rental properties. The bill establishes standards for how landlords can measure and bill tenants for utilities when using alternative metering methods rather than direct utility company meters.

Why is this important

Submetering and ratio billing systems allow landlords to bill tenants based on estimated or proportional utility usage rather than actual consumption, which can result in tenants paying higher rates or fees than direct billing. Clear regulations protect renters from potential overcharging while allowing property owners legitimate cost-recovery mechanisms, making this a practical consumer protection issue affecting housing affordability.

Potential points of contention

  • Landlord compliance costs — Implementing compliant metering and billing systems may require significant capital investment, potentially passed to tenants through rent increases
  • Tenant billing accuracy — Disputes may arise over whether allocation formulas fairly represent actual consumption, particularly in properties with shared systems
  • Enforcement mechanisms — The bill's effectiveness depends on adequate oversight capacity; unclear how violations will be investigated and remedied
  • Exemptions and scope — Questions about which property types are covered and whether certain landlords receive exemptions could create loopholes

Compiled from official sources — confirm details with the bill’s official record.

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