City of San Diego Residential Tenant Utility Fee Ordinance

City of San Diego Residential Tenant Utility Fee Ordinance

1. Purpose

• The Residential Tenant Utility Fee ordinance (O-21987) went into effect on August 17, 2025.  The Ordinance ensures fairness, equity, and transparency in how landlords charge City of San Diego tenants for City-Provided utility fees (water, sewer, stormwater, and trash/recycling).
• It does not apply to SDGE, private companies contracted with City to pick up trash, internet, cable, and other utilities not provided directly by the City of San Diego.

2. Limits on Utility Fees

• Landlords can only charge tenants for utility fees up to the actual amount the landlord pays for the tenant’s utility services.
• Landlords cannot charge more than what they pay for those services.
• Lawful late fees for unpaid utility fees are allowed, unless the amount is unreasonable and excessive.

3. Notice Requirements

• Landlords must provide written notice to tenants before charging utility fees. This can be:
  • In the lease agreement, or
  • By delivering or mailing a written notice at least 30 days before charging the fee.
• If landlords were already charging utility fees before the ordinance, they must provide written notice within 90 days of the ordinance taking effect, i.e. no later than November 15, 2025.
• Notices must inform tenants of their rights, including the right to see utility bills and calculations upon request.

4. Right to Documentation

• Upon written request, tenants have the right to receive, within 10 days:
  • A copy of the landlord’s utility or tax bill, or
  • A copy or link to the tax roll billing report (if fees are collected on the County tax rolls).
• If a single bill covers multiple tenants, the landlord must also provide the calculations used to allocate fees.

5. Third-Party Billing

• If a third-party service provider is used to bill or collect utility fees, any costs passed on to the tenant must be clearly itemized.
• Tenants have the right to see invoices or receipts supporting these charges.

6. Enforcement and Remedies

• Tenants can take legal action if their rights under this ordinance are violated.
• Remedies include asking the court to enforce the ordinance, monetary damages (including punitive damages), and other legal remedies.
• Landlord’s failure to comply with the ordinance may provide an eviction defense if tenants are being evicted for nonpayment of utilities covered by the ordinance.
• The ordinance integrates San Diego Municipal Code enforcement rules to ensure compliance and deter violations.  Tenants my file complaints with San Diego City Attorney Housing Protection Unit.

7. Additional Protections

• These rights are in addition to any protections provided by state or federal law.