City of San Diego Residential Tenant Utility Fee Ordinance

On July 15, 2025, the San Diego City Council gave final approval to an ordinance “to promote fairness, equity, and transparency regarding how landlords charge utility fees to residential tenants.” (Section 1. Chapter 9, Article 8 of the San Diego Municipal Code is amended by adding new Division 12, sections 98.1201 through 98.1207.) The ordinance goes into effect on August 17, 2025.

Allowable Fees/Charges

A landlord may charge a tenant the cost of a utility fee the landlord pays for utility services the tenant consumes.

The utility fee the landlord charges the tenant shall be no greater than the amount the landlord pays for the tenant’s utility services.

Nothing in this Ordinance shall be interpreted to prohibit the landlord from charging the tenant an otherwise lawful late fee for unpaid utility fees.

Submeters (pursuant to Chapter 2.5 of Title 5 of Part 4 of Division 3 of the California Civil Code) are not subject to this Division.

Please note: The ordinance only covers city-provided utility services: water, sewer, stormwater, or solid waste management services. SDG&E, franchise hauler charges, and other utilities not provided by and paid to the City of San Diego are not covered. See “Key Definitions” below.

Mandatory Written Notices

Landlords must give tenants written notice before charging any utility fees:

For new fees – notice must be at least 30 days in advance.
For fees already being charged when the ordinance takes effect – notice must be delivered within 90 days of the effective date (August 17, 2025).

The notice may be included in the lease or sent as a separate written notice (personal delivery or first‑class mail) and must clearly explain tenant rights and how the fees are calculated.

To begin charging utility fees to a tenant, the landlord shall either:

Provide the tenant with written notice in the lease that the tenant will be charged a utility fee for utility services the tenant consumes; (SCRHA City of San Diego Rental Agreements – Form #200SD or #200SD SFR / Addendum Form #296)

Provide written notice, by delivering a copy to the tenant personally or by serving a copy by mail under the procedures prescribed in section 1162(a) of the Code of Civil Procedure, to all tenants residing at the residential rental property that will be charged a utility fee for utility services the tenant consumes.
Landlords providing written notice shall do so at least 30 calendar days in advance of charging the tenant a utility fee.
Use SCRHA Form #350 – Change in Terms of Tenancy along with Form #296 – City of San Diego Utility Fee Addendum

For Tenants who Are already being charged for utilities/Existing RUBs charges:

If a landlord began charging tenants for utility fees prior to the effective date of this Division (August 17), written notice shall be provided no later than 90 calendar days after this Division is in effect (November 14).

While the deadline to provide mandatory language for residents who are already being billed for covered utilities is November 14, 2025, SCRHA recommends that housing providers act as soon as possible and aim to have mandatory notices served by October 31, 2025. Use Form #296 or the Letter entitled “City of San Diego Utility Fee Letter”. Serve to tenants either via Personal Service or by First-Class Mail. Note that Form #296 requires a signature. Document service by using Form 455 and placing in resident files.

The written notices to any residential tenant whether in leases, addenda, in Notices of Change in Terms and/or in accompanying addenda, or provided in letters or forms to existing residents, must include the following language:

Equitable Fees and Right to Notice: The City of San Diego allows landlords to charge you a utility fee for water, sewer, stormwater, and trash and recycling services if (i) the utility fee is not greater than the amount the landlord pays for your utility services, (ii) you are provided written notice that a utility fee for utility services will be charged, and (iii) upon request, the landlord provides you with a copy of the utility or tax bill and the calculations used to determine the amount of the utility fee you are charged, if that applies.

Tenants’ Right to Request Documentation and Landlord’s Obligation to Provide Documentation

Within 10 calendar days of a tenant’s written request, a landlord that charges a tenant a utility fee shall provide the tenant with a copy of the landlord’s utility or tax bill that sets forth the utility fee the landlord paid or shall provide a copy or link to the tax roll billing report if the utility fees are collected on the County tax rolls.

A landlord may redact confidential or sensitive personal information from the utility or tax bill provided to the tenant.

If a tenant provides a written request and the landlord receives a single utility bill from the City for utility services provided to multiple tenants, the landlord shall provide the utility or tax bill and the calculations used to determine allocation of the utility fees to the individual tenants within 10 calendar days of the request.

If a third-party service provider manages, bills, or collects utility fees from the tenant on behalf of the landlord, and the costs for the third-party service provider to provide this service are passed through to the tenant, the specific amount for this service that is charged to the tenant shall be separately identified and included in the documentation and calculations provided to the tenant.

The tenant shall be provided invoices, receipts, or other verifiable documentation to support the third-party service provider’s billing fees charged to the landlord and passed through to the tenant.

Enforcement and Remedies

A tenant claiming a violation of this Division may file an action against a landlord in a court of competent jurisdiction.

A tenant may seek injunctive relief, equitable relief, and monetary damages, including punitive damages, in a civil action against a landlord for a violation of this Division.

The provisions of Chapter 1, Article 2 of the San Diego Municipal Code, including the enforcement of judicial and administrative remedies, shall apply to this Ordinance.

The remedies under this section are cumulative and may be used in addition to any other remedies in this Division or at law, statute, or ordinance.

Key Definitions

Identified parcel means a parcel of real property that the City has identified as having a special benefit conferred upon it and upon which a property-related fee has been imposed.

Sensitive personal information includes confidential financial data, bank account numbers, credit card or debit card numbers, account log-in information, intellectual property, and identification numbers such as social security number, passport number, driver’s license number, and individual or business taxpayer identification numbers.

Tax roll billing report means a report published pursuant to California Health and Safety Code section 5473 that contains a description of identified parcels of real property receiving services billed on the tax roll and the amount of the charge for each identified parcel for the year.

Utility fee means the amount the City charges for utility services.

Utility services means City-provided water, sewer, stormwater, or solid waste management services.