Utility Bills in Rented Flats: Electricity, Gas and Water Explained

Ask any tenant in Dhaka what causes the most confusion after moving into a new flat, and the answer is rarely the rent itself. It is the utility bills. Is electricity prepaid or postpaid? Is there a separate meter or a sub-meter? Why is the gas bill a fixed amount every month? Who pays the WASA water bill, and why is it bundled into the service charge? Landlords face the same questions from the other side, and misunderstandings about utility bills in a rented flat in Bangladesh are one of the most common sources of tension between the two.

This guide explains how electricity, gas and water bills usually work in rented flats across Bangladesh, the common arrangements between landlords and tenants, how to calculate shared bills fairly, what to check at move-in and move-out, and how to avoid disputes. It is written for both landlords and tenants, including people moving to Dhaka or Chattogram for the first time and probashi owners managing flats from abroad.

The Three Main Utilities in a Rented Flat

Most rented flats in Bangladeshi cities deal with three core utilities, plus a few extras:

Provider names depend on your location. If you are not sure who supplies your building, the meter card, a previous bill or the landlord will tell you.

Electricity Bills: Prepaid, Postpaid and Sub-Meters

Prepaid meters

Many city flats now have prepaid meters. The tenant recharges the meter through bKash, Nagad, bank apps or vending points, and electricity is available as long as there is balance. This is the cleanest arrangement for renting because each flat pays exactly for what it uses and there is no bill for the landlord to chase.

At move-in, note the meter number and remaining balance. At move-out, the tenant should not leave a large unused balance, or should agree with the landlord how it will be adjusted. Also check that there is no emergency balance or arrears on the meter that the new tenant would inherit.

Postpaid meters in the flat's name

Some flats have their own postpaid meter, registered in the owner's name. A bill arrives each month and the tenant pays it directly or hands the money to the landlord. The risk here is unpaid bills: if the tenant leaves with dues, the owner remains responsible to the utility. Landlords should check the paid bills each month or ask for the bill payment receipt with the rent.

Sub-meters

In some older buildings, or where one main meter supplies several units, the landlord installs sub-meters to measure each flat's usage and then divides the main bill. This is where most disputes happen, because the calculation is done by the landlord rather than the utility. The arithmetic must be transparent. Our detailed guide on electricity sub-meter billing explains the method step by step, and the glossary entry what is an electricity sub-meter covers the basics.

Worked Example: Splitting a Main Electricity Bill by Sub-Meter

For example (illustrative): a small building has one main postpaid meter supplying three flats and the common areas. Each flat has a sub-meter, and there is a separate sub-meter for the common areas (pump and stair lights).

The main utility bill for the month is Tk 9,450 for 900 units (including all charges and VAT on the bill). Average cost per unit = Tk 9,450 ÷ 900 = Tk 10.50.

• Flat 1A: 250 × 10.50 = Tk 2,625
• Flat 2A: 350 × 10.50 = Tk 3,675
• Flat 3A: 200 × 10.50 = Tk 2,100
• Common areas: 100 × 10.50 = Tk 1,050, shared equally among three flats = Tk 350 each (or included in the service charge)

Check: 2,625 + 3,675 + 2,100 + 1,050 = Tk 9,450. The figures are invented for illustration. In practice, the main meter total and the sum of sub-meters often differ slightly because of line losses and meter accuracy; agree in advance how that small difference is shared, usually proportionally.

Tip for landlords: Share a photo of each sub-meter reading and a copy of the main bill with tenants every month. Transparency removes almost all suspicion about sub-meter charges.

Gas Bills: Fixed Burner Bills, Metered Gas and LPG

Fixed monthly bills for piped gas

Many older residential connections in Dhaka and other cities are not metered. Instead, the gas company charges a fixed monthly amount depending on whether the kitchen has a single or double burner. The rates are set by the authorities and have been revised several times, so check the current bill rather than relying on an old figure. Because the bill is fixed, usage does not change what you pay.

In rentals, the gas bill is usually either paid by the tenant directly using the customer's bill book or online, or collected by the landlord along with rent and paid on the tenant's behalf. Either way, the landlord should confirm each month that the bill is paid, since arrears stay with the connection and ultimately the owner.

Prepaid gas meters

In some areas, prepaid gas meters have been installed. These work like prepaid electricity: the user recharges and pays for actual consumption. Note the balance at move-in and move-out.

LPG cylinders

Many newer buildings, and areas without new piped connections, use LPG cylinders. Tenants usually buy their own cylinders. Some buildings have a central LPG system with its own billing. Safety matters: cylinders should be kept upright in a ventilated place, checked for leaks, and never stored in bulk inside the building.

Water Bills: WASA and Building-Level Supply

Water is the utility most often shared. In most multi-flat buildings, WASA or the local authority supplies water to one connection for the whole building, with one bill. Water is stored in an underground reservoir and pumped to the roof tank, from where it reaches each flat. Individual flat-level water meters are uncommon in older rented buildings.

Common ways to share the water bill:

• Included in rent: the landlord pays the water bill and sets rent accordingly.
• Included in service charge: the water bill, pump electricity and tank cleaning are part of the monthly service charge.
• Fixed water charge per flat: a separate line, sometimes varied by the number of residents or flat size.

If there is a deep tube well instead of or in addition to WASA supply, the main cost becomes pump electricity and maintenance rather than a water bill. Our Bangla guide on sharing the WASA water bill goes into more detail on fair division methods.

Other Charges: Internet, Generator, Waste and Lift

Internet and cable TV

Internet is almost always the tenant's own subscription with a local ISP. Some buildings have one or two providers with cables already in place, which can limit choice. Cable TV works similarly. If a previous tenant's connection is still active, make sure it is closed or transferred so bills do not mix.

Generator charge

Where the building has a generator for the lift, pump and common lights, fuel and servicing are usually recovered through the service charge or a separate generator line. If flats also receive limited generator supply, some buildings measure it with a separate sub-meter. Ask about this before signing, especially in areas with frequent load-shedding.

Waste collection

Door-to-door waste collection is often run by local service providers under city corporation arrangements, with a monthly fee per flat. It may be collected directly from tenants or included in the service charge.

Tips for Probashi and Remote Landlords

Owners living abroad or in another city face extra risk with utilities because they cannot see the meters or bills themselves. A few habits help:

• Prefer prepaid electricity and, where available, prepaid gas meters for rented flats, so unpaid bills cannot build up.
• Ask your caretaker or property manager to send monthly photos of sub-meter readings and paid bills.
• Keep a copy of each utility customer number and account detail in one secure place.
• Check the utility's online portal or app, where available, to confirm postpaid bills are paid.
• Settle final bills and readings before approving any deposit refund at move-out.

Service Charge vs Utility Bills: What Is the Difference?

Tenants are often confused by the "service charge" line. It is not a utility bill in itself but a monthly contribution to shared building costs, which may include:

• Common-area electricity (stairs, lift, pump, security lights)
• Water bill for the building
• Guard and cleaner salaries
• Lift maintenance
• Generator fuel and servicing
• Waste collection fees

What is included varies from building to building. The rental agreement should list what the service charge covers, so tenants know which bills they pay separately.

What Should Be Written in the Rental Agreement

Most utility disputes disappear if the agreement answers these questions clearly:

1. Is electricity prepaid, postpaid or sub-metered, and how is the tenant's share calculated?
2. How is gas billed and who pays it, directly or through the landlord?
3. Is water included in rent, in the service charge, or charged separately?
4. What exactly does the service charge include, and can it be revised?
5. What happens to meter balances, deposits and unpaid bills at move-out?
6. Who pays for connection changes, meter repairs or load increases requested by the tenant?

Move-In and Move-Out Checklist for Utilities

Landlords often hold back part of the security deposit until the final utility bills are confirmed. This is reasonable if it is agreed in advance and the amount held is proportionate to the likely final bills.

Keeping Utility Costs Down

Lower utility bills benefit both sides. Tenants spend less, and landlords face fewer late payments and complaints. Simple steps include:

• Use LED lighting and energy-efficient fans.
• Set air conditioners at a moderate temperature and service them regularly.
• Fix leaking taps and running toilets quickly; for landlords, a leaking reservoir or tank wastes pumped water and electricity.
• Use timers or sensors on stair lights.
• Turn off gas burners when not cooking, even with fixed bills, for safety.

Common Mistakes With Utility Bills

• No written billing method: the landlord and tenant each assume something different.
• Sub-meter charges without showing readings: tenants suspect overcharging.
• Charging a per-unit rate higher than the actual bill average without disclosure. Landlords should pass on the actual cost unless another method is clearly agreed.
• Not checking postpaid bills are paid: the owner inherits arrears.
• Forgetting meter readings at move-in and move-out.
• Unclear service charge: tenants cannot tell whether water or common electricity is included.
• Tenants tampering with meters or connections: dangerous and illegal; landlords should prohibit it in the agreement.

Final Thoughts

Utility bills in a rented flat do not have to be a monthly argument. Understand which provider and billing method applies to each utility, write the arrangement into the agreement, record meter readings at the start and end of the tenancy, and share the evidence behind every shared bill. Transparency is the single most effective tool for landlords and tenants alike.

For landlords managing several flats, Bariwala ERP (বাড়িওয়ালা ERP) can calculate electricity sub-meter bills from readings, add them along with service charges to each unit's monthly invoice, record payments and send tenants SMS reminders, so every tenant sees a clear breakdown of what they owe and why.