Commonwealth Court Holds Landlord Liable for Utilities

Separately metering utilities is an effective way of adding value to both multifamily and commercial properties. However, disputes often arise when properties are not metered properly. The legal implications often lead to landlords becoming responsible for the utilities and ultimately must have the utilities transferred into their name. Landlords must recognize their responsibilities as it pertains to metered utilities and have a good understanding of how properties are metered before acquiring them, confirm that properties already owned are metered correctly and make sure that when separately metering utilities in buildings already owned the work is done properly.

A recent decision handed down by the Commonwealth Court of Pennsylvania in 1-A Realty v. Pennsylvania Public Utility Commission demonstrates why landlords must understand their rights and obligations associated with metered utilities. As this case illustrated, failure to abide by state regulations may result in additional expenses incurred by property owners.