Legislative Update - August 14, 2025

New Utility Pass-Through Ordinance for City of SD Properties
Starting August 17, the City of San Diego’s ordinance regulating the pass-through of city-provided utility costs at rental properties takes effect. Property owners and managers in San Diego—make sure you understand the rules to stay compliant.

• 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.
• The ordinance only covers city-provided utility services: water, sewer, stormwater, or solid waste management services.

Specific disclosure language is required in leases and addendums. Additionally, landlords who were already passing along utility charges prior to August 17 must provide the disclosure within 90 days of the ordinance’s effective date. Learn more.

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