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Utilities & meters

Utility billing for rentals — how to get it right

Utility settlements are the most common source of disputes between tenants and landlords. See which billing model to choose, how to take meter readings step by step, and which mistakes to avoid — plus, at the end, how to automate the whole process.

See the rent and payment settlement feature

Three ways to settle utilities in a lease

There's no single right model — pick the one that fits your property and your management style, then spell it out precisely in the lease.

  • Flat fee

    The tenant pays a fixed amount for utilities every month, regardless of actual consumption.

    AdvantagesMaximum simplicity — no meter readings or monthly calculations, and a predictable amount for both sides.

    RisksAny surplus of the flat fee over actual utility costs counts as taxable income for the landlord. If consumption is high, you cover the difference out of pocket, and the tenant has no incentive to save.

  • Advance payment with periodic reconciliation

    The tenant pays a monthly advance for utilities, and at an agreed interval you reconcile it against actual meter readings and supplier invoices.

    AdvantagesA fair compromise — stable monthly payments combined with billing based on real consumption.

    RisksRequires regular readings and keeping track of reconciliation deadlines. An advance set too low ends in a large top-up payment and a dispute at settlement time.

    In Brokik you run this model in the app: the tenant submits a meter reading with a photo every month, and Brokik calculates a provisional settlement — during the tenancy or at move-out. When the bill arrives, Brokik splits it between tenants by the readings from the handover protocols and shows the difference against the provisional settlement.See how settling utility advances works

  • 1:1 pass-through billing based on consumption

    The tenant covers exactly what the meters and supplier invoices show — no flat fee, no markup.

    AdvantagesFull transparency. With the right wording in the lease, utility charges generally don't count as the landlord's income — you're simply passing the cost through.

    RisksThe most work every month: readings, calculations, and itemizing the bill, with amounts that change from month to month.

What to put in the leaseWhatever model you choose, the lease should specify: how utilities are billed (flat fee, advance, or pass-through), which utilities are included, who takes meter readings and when, what rates consumption is calculated at (supplier tariffs), payment and reconciliation deadlines, and how utilities are settled when the tenancy ends. The more precise the wording, the less room for disputes.

Utilities step by step — from move-in to move-out

Good billing starts on day one of the tenancy, not with the first invoice.

  1. Record the starting readings in the handover report

    When you hand over the keys, record the readings of all meters in the handover/acceptance report and take photos of the meters showing the readings clearly. This is the reference point for every settlement that follows.

  2. Decide who takes readings, and when

    Set a fixed reading schedule — for example, the last day of the month — and assign responsibility. Most often the tenant reports the readings and the landlord verifies them during property visits.

  3. Calculate consumption and multiply by the rate

    Consumption is the difference between the current and previous meter reading. Multiply it by the supplier's tariff rate and add any fixed charges — that's how a reliable monthly bill comes together.

  4. Settle utilities at the end of the tenancy

    At move-out, record the final meter readings (again with photos) and prepare a final settlement: consumption since the last reading, any advance-payment reconciliation, and the deposit refund as a separate line item.

Monthly readings without driving to the flatYour tenant enters the meter reading in Brokik on their phone and can add a photo; you approve it before billing.Meter readings in a rental

The most common mistakes in utility billing

These mistakes come up most often in disputes with tenants — and every one of them is easy to avoid.

  • No meter readings in the handover report

    Without documented starting readings, you can't prove how much the tenant actually used. Every handover should end with a report that includes meter readings and photos.

  • "Utilities included in rent" with no cap

    A convenient arrangement, but without a consumption cap the tenant has no incentive to save — and you cover the difference. If you do bundle utilities with rent, set a cap and a rule for charging extra once it's exceeded.

  • Irregular readings

    Reading meters once every six months means a lump-sum top-up and an argument over whose consumption it actually was. A steady, ideally monthly, reading schedule keeps settlements small and predictable and catches anomalies early.

  • No confirmations or documentation

    Verbal agreements and settlements "over the phone" have no evidentiary value. Every reading, settlement, and payment should leave a trail — a photo, a message, a transfer confirmation.

  • Mixing the deposit with utility settlements

    The deposit secures claims under the lease — it's not a running utilities fund. Only deduct from it at final settlement, and always with an itemized breakdown — utilities and any damages listed separately.

How utility billing works in Brokik

Brokik runs the whole process — from the starting readings in the handover report to the final settlement at move-out.

  • Custom billing setup per property

    For each property, you set up your own billing model: fixed charges plus utilities billed by meter readings and rates.

  • Tenants submit meter readings in the app

    No more chasing readings — the tenant enters the meter readings in the app, and you have them in the system right away.

  • Automatic calculation and monthly billing

    Brokik calculates consumption and amounts, then prepares a monthly bill broken down by item — so the tenant sees exactly what they're paying for.

  • Payment reminders

    The tenant gets automatic reminders about payment deadlines — no awkward phone calls or texts.

  • A complete billing history

    Readings, settlements and payments from every month stay with the property. They help with your tax return and in a dispute.

  • Final settlement when the tenancy ends

    At move-out, you'll prepare a final settlement that accounts for the last meter readings and any advance-payment reconciliation.

  • Handover report with meter readings

    You document the starting and closing readings in a report you prepare and sign electronically in Brokik.

  • Provisional settlement and bill split when tenants change

    An advance with control readings takes five steps. The tenant pays a fixed advance on the invoice and submits a reading with a photo every month. Brokik calculates a provisional settlement during the tenancy or at move-out. When the bill arrives, it splits it between tenants by the readings from the handover protocols, and you settle the difference with the deposit in the final settlement.

Who sees what

Utility settlement in Brokik — who does what and sees what

The advance-with-control-readings model in five steps, from two places: the owner's or manager's screen and the tenant's screen. The screenshots come from the live app.

Owner or managerTenant

  1. Advance and unit price

    Start of the tenancy
    Owner or manager: You set the fixed advance, control readings and the price per kWh, m³ or GJ.
    Tenant: You pay the same advance every month — you see it on the invoice next to the rent.

  2. Meter reading with a photo

    Every month
    Owner or manager: You receive the tenant's reading with a meter photo and approve it.
    Tenant: You enter the meter value and add a photo from your phone.

  3. Provisional settlement

    Move-out
    Owner or manager: Brokik calculates usage at your price, subtracts the invoiced advances and shows the underpayment or refund.
    Tenant: At the key handover you receive the protocol with meter readings to sign.

  4. Splitting the supplier's bill

    When the bill arrives
    Owner or manager: You enter the amount and usage from the bill — Brokik splits it between tenants and the vacancy by the readings from the protocols.
    Nothing to doAny difference against the provisional settlement is settled with you by the owner separately.

  5. Underpayment or refund

    Closing
    Owner or manager: In the final settlement you see the result from the readings, the amount already added to an invoice, and the balance with the deposit.
    Nothing to doYou receive the underpayment as one invoice line or in the deposit settlement.
Brokik calculates the provisional settlement from the readings and your unit price. The supplier's bill remains final — when it arrives, Brokik splits it between tenants and shows the difference.

Frequently asked questions about utility billing in rentals

Short answers to the questions landlords ask most often

Useful pages and articles

Dig deeper into billing and get ready for the whole rental process

Meter readings in a rentalYour tenant submits readings by phone, you approve them.
Rent and payment settlement in BrokikSee how automatic rent and utility billing with tenants works.
Check-in and check-out reportDocument the condition of the apartment and meters when handing over the property.
Brokik vs Excel — the comparisonSee why a spreadsheet isn't enough to manage a rental.

Bill utilities from the readings your tenant submits

Create an account, set up billing for your property, and let tenants submit meter readings in the app. You pay for a plan sized to your number of properties, with no commission on rent. We refund your first plan in full if you ask within 30 days of paying.The content on this page is for informational purposes only and does not constitute tax or legal advice. For specific situations, consult a tax advisor or lawyer.