Utility costs in San Francisco can vary widely, even between apartments with similar rent. One of the biggest reasons is how a building is metered. Many renters don’t find out until after they move in that their utilities are billed very differently than expected. Understanding the difference between master-metered and individually metered buildings can help you avoid surprises and compare apartments more accurately.
What “Master Metered” Means
In a master-metered building, the entire property uses one utility meter for services like water, gas, or electricity. The landlord receives a single bill and then allocates costs to tenants.
How costs are usually split
• Flat monthly utility fee
• Allocation based on unit size or number of occupants
• Ratio Utility Billing Systems, often called RUBS
Because billing is shared, your costs may rise even if your own usage is low.
What “Individually Metered” Means
Individually metered apartments have a separate meter for each unit. You pay the utility provider directly for what your unit uses.
Why renters often prefer this
• Bills reflect personal usage
• More control over monthly costs
• Easier to budget and compare apartments
These units are more common in newer buildings but still exist throughout older parts of San Francisco.
How SF and California Law Regulate Utility Billing
San Francisco and California have specific rules around how utilities can be charged in rental housing. Landlords must clearly disclose billing methods before you sign a lease. For master-metered buildings, they generally cannot profit from utility charges and must use a reasonable, consistent method to divide costs.
If utilities are billed separately from rent, the lease should explain
• which utilities are shared
• how costs are calculated
• how often charges are billed
If this information is missing, that’s a red flag worth questioning before applying.
Why This Matters When Comparing Apartments
Two apartments with the same rent can have very different monthly costs once utilities are factored in. A lower-rent unit in a master-metered building may end up costing more than a higher-rent unit with individual meters.
When comparing listings, ask
• Are utilities included, allocated, or individually billed
• Which utilities are shared
• Average monthly utility cost for the unit
These questions can save you hundreds of dollars over the course of a year.
What Renters Should Do Before Signing
Before committing to a lease, request written clarification on utility billing. If possible, ask current tenants about typical monthly charges. For master-metered buildings, confirm whether charges fluctuate seasonally or stay flat.
Understanding how utilities are billed helps you see the true cost of an apartment, not just the advertised rent.
The Bottom Line
Utility billing methods can significantly affect affordability in San Francisco apartments. Master-metered buildings offer predictability in some cases, while individually metered units provide more control. Knowing the difference allows renters to make more informed decisions and avoid unexpected monthly expenses.