In California, Opaque Utility Charges are Loopholing Rent Caps. Tenants are Fighting Back.

A commonly used billing system can allow landlords to quietly shift building utility costs onto tenants. Tenants say it’s time to break open the black box.

1 minute read

October 31, 2025, 7:00 AM PDT

By Shelterforce


Man looking at electric meter and writing something down.

Tramp57 / Shutterstock

Los Angeles tenants are challenging the growing use of a system that divides a building's total utility costs among tenants using undisclosed formulas. Tenants say the system allows landlords to pass all water, sewer, and trash expenses onto renters, even when leaks or inefficiencies are to blame, giving landlords no incentive to make repairs or invest in energy upgrades.

In one LA apartment complex, tenants organized a utility strike and won $25,000 in refunds and lower monthly bills. Still, residents face unpredictable utility costs and little transparency. 

Advocates warn that the system is spreading across California as a workaround to rent caps, and they are calling for laws that require clear billing to prevent landlords from charging tenants for building inefficiencies.

Friday, October 10, 2025 in Shelterforce Magazine

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

November 6, 2026 - Grist

People walking in downtown St. Louis, walking past shops.

Move over, LA: St. Louis gears up for Olympics, invests millions in downtown redevelopment

The Missouri city will host the 2028 Olympic soccer group stage and knockout matches.

November 1, 2026 - Smart Cities Dive

A rendering of the California high speed rail Fresno station. Two escalators leading into the station are visible.

California High-Speed Rail Authority picks trainset manufacturer

The California High-Speed Rail Authority aims to start servicing passengers by 2033.

November 1, 2026 - Railway News

Canal street, where pedestrians are packed shoulder to shoulder.

NYC renovations for dangerous, ‘mercilessly crammed’ street delayed until 2027

Construction was supposed to begin this fall.

45 minutes ago - Gothamist

A rendering of Midway Rising that shows people mingling in a green space between apartment buildings.

San Diego’s Midway Rising project gets greenlight from city council

The project looks to become the largest affordable housing development in California's history.

1 hour ago - KPBS

Professional electrical lineman in bucket truck performing power line maintenance against clear blue sky.

Bill to overhaul energy permitting clears Senate

The Bipartisan American Affordability and Jobs Act of 2026 still needs to pass the House of Representatives.

2 hours ago - Inside Climate News

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.