# How to settle utilities in a rental apartment — a step-by-step guide > Electricity, water, gas and waste — who pays and how to calculate it so the numbers add up. A step-by-step guide: from choosing a billing model, through meter readings, to the final settlement at move-out. Published: 2026-06-23 Updated: 2026-08-26 Source: https://smartrentier.com/blog/how-to-settle-utilities-in-a-rental-apartment Tags: Guides, Finance --- Settling utilities looks simple until you have to put an actual number in front of your tenant. Below is the whole process, step by step — from choosing a model to the final settlement at move-out. ## Step 1: Choose your utility billing model Before you calculate anything, decide how utilities will be billed. In practice you have three options: - **Utilities included in rent** — one amount, no maths. Simplest, but you carry the risk: if the tenant uses more, you cover the difference. - **Flat rate (advance payments)** — the tenant pays a fixed amount monthly and you reconcile it against actual costs periodically. A compromise between convenience and fairness. - **Metered settlement** — you pay for what's actually used. The fairest option and the most dispute-proof, but it needs regular readings. Put the chosen model in the lease, along with the rates and the settlement date. What else the lease must contain is covered in [Residential lease agreement — what to include](https://smartrentier.com/blog/residential-lease-agreement-what-to-include). ## Step 2: Record meter readings when handing over the keys This is the easiest step to skip and the most expensive one to lose. At handover, note every meter's state and **photograph the display**. Without a starting point, your first settlement is just your word against your tenant's. Put the readings in the handover report — see [Handover report — what must it contain](https://smartrentier.com/blog/handover-report-what-must-it-contain). ## Step 3: Set up meters and rates For each unit, list what you actually bill: **electricity, gas, cold water, hot water, waste**. Each item needs three things: a unit (kWh, m³), the current rate per unit, and the source of that rate (an invoice, a housing association resolution). Waste is usually billed differently from the rest — it's a fixed charge per person or per unit, not usage times rate. Separate it from the start. ## Step 4: Collect readings every month Readings are the foundation of the whole settlement. You have three options: drive over yourself, text the tenant, or give the tenant a tool to submit the reading themselves — ideally with a photo of the meter as proof. The third option takes the least work and holds up best in a dispute: date, value and photo in one place. More on organising that channel in the piece on [one channel for every tenant message](https://smartrentier.com/blog/tenant-communication-without-chaos). ## Step 5: Convert usage into an amount The rule is simple: **usage = current reading − previous reading**, and **amount = usage × rate**. Two things that trip people up: - **A reading can't be lower than the previous one** — if it is, it's usually a typo or a replaced meter. Sort it out before you bill anything. - **Rates change mid-year** — if a new tariff arrived, update it immediately. Billing January at a two-year-old rate is a shortcut to an argument. ## Step 6: Add utilities to the tenant's charges Utilities shouldn't live a separate life next to rent. Your tenant should see **one charge**: rent + utilities + any other fees, itemised. Otherwise you end up asking whether a payment covered electricity or rent — and the balance stops adding up. When a tenant starts falling behind, the order of actions is covered in [Tenant not paying — what to do step by step](https://smartrentier.com/blog/tenant-not-paying-what-to-do). ## Step 7: Reconcile the flat rate once a year If you went with a flat rate, collecting advances is only half the job. Once a year, compare **total advances** against **total actual costs** and work out the difference: - **Underpayment** — the tenant tops up the difference (add it to the next charge). - **Overpayment** — the surplus goes back to the tenant or counts towards future charges. Show the settlement broken down by month and item. Nobody argues with a number when they can see where it came from. ## Step 8: Settle utilities at move-out At the end of the tenancy, record the final meter states (photos again) and bill the last period. Only then settle the deposit — last month's utilities are the single most disputed item at move-out. The rules are in [Security deposit — rules and settlement](https://smartrentier.com/blog/security-deposit-rules-and-settlement). ## How this works in SmartRentier Steps 3–7 are mechanical — which is exactly why they're worth handing to software. In SmartRentier you configure meters with rates, and your tenant submits readings **with a photo** from their [tenant panel](https://smartrentier.com/funkcjonalnosci/panel-najemcy). You approve or reject with a comment — and the system calculates usage, converts it to an amount and **adds utilities as a separate line on the tenant's charge**, next to rent. With a flat rate, the app compares advances against actual costs and works out what's owed or refundable. The full reading history stays — with dates and photos — so "where does this amount come from?" takes seconds to answer. For why utilities are one of the most common sources of conflict and how to prevent it, see [Settling utilities without arguments](https://smartrentier.com/blog/settling-utilities-without-arguments). Start for free — the Kawalerka plan is free forever, no card required. You only pay when you need more properties. --- PL: https://smartrentier.com/blog/jak-rozliczyc-media-w-mieszkaniu-na-wynajem.md