In a decisive move to bolster renter protections, the San Diego City Council has voted unanimously to ban landlords from overcharging tenants for city utility services. This decision follows increasing demands from renters for greater transparency regarding utility billing practices by property owners.
The new legislation is just a signature away from becoming law, pending the approval of Mayor Todd Gloria. The measure is expected to take effect as soon as August, offering renters relief amid rising utility fees.
Councilmember Sean Elo-Rivera, who proposed the ban, emphasized the importance of saving money for vulnerable renters during the vote, stating, “Any way we can save folks money is a worthwhile effort.”
Historically, tenants have been responsible for paying utility fees, including water, stormwater, and sewage services, which landlords pass onto them. Recently, San Diego introduced a new fee for residential trash pickup, a direct result of the narrowly passed Measure B in 2022.
Elo-Rivera’s office raised concerns that the new trash fee might create opportunities for landlords to exploit tenants by charging excessive fees. While this fee does not impact larger apartment complexes that have private trash services, it significantly affects smaller units such as townhouses and duplexes.
Under the new policy, renters are granted rights to request their landlords’ utility bills and the calculation methods used for their charges. This addresses long-standing grievances from renters who have alleged that they were overcharged due to opaque billing practices by both landlords and third-party utility billing companies.
In a class-action lawsuit filed in 2022, some tenants accused Conservice, a popular utility billing service, of failing to provide essential billing information to verify charges. The new renter protection seeks to remedy these issues by making it illegal for landlords to pass on any charges exceeding what they actually pay the city for utilities, excluding late fees.
Furthermore, landlords must disclose any additional fees charged for third-party utility billing services, helping to ensure transparency in the billing process. Elo-Rivera acknowledged the significant power imbalance that often exists between tenants and landlords, leading to exploitation in billing practices.
“Large corporate housing companies exploit this to charge renters whatever amount on their utilities they can get away with because the tenants do not have the power to fight it, nor the luxury to move without potentially uprooting their lives,” he said during a council meeting.
As proposed reforms took shape over recent months, many tenants eagerly supported the initiative, highlighting the need for improved transparency in utility billing. High utility charges often contribute to San Diego’s broader cost-of-living crisis. Currently, San Diego ranks as one of the most expensive housing markets in the nation, with average rents around $3,150 per month—more than $1,000 above the national average.
For residents like Natalie Raschke, the steep utility fees add extra strain to an already challenging financial environment. Raschke, who has firsthand experience with homelessness after losing her job during the pandemic, now rents an apartment that is subject to a $102 monthly trash fee from a third-party service—far exceeding the city’s highest trash pickup rates.
These rising costs and hidden fees have prompted residents like Raschke’s colleague, Julie Porter, to advocate rigorously for fairness in utility billing. During a council meeting last month, Porter remarked, “These hidden fees have got to stop. It has to be transparent—know upfront what you’re going to be paying rather than being nickel and dimed for various utility services.”
With the average rent in San Diego continuing to soar, the council views this new renter protection as a targeted approach to alleviate one aspect of the financial burden currently faced by renters.
However, the reform has not been without its critics. Landlords and their advocates have described the ban as “a solution searching for a problem.” Public policy consultant Craig Benedetto stated that he was unaware of any utility overcharges among landlords affiliated with his consulting firm, California Strategies. Nevertheless, he conceded that issues of overcharging could potentially exist in other segments of the rental market.
As this legislation heads toward becoming law, the impact on both tenants and landlords remains to be seen. The overarching goal is to ensure fair and transparent billing practices provide some relief for renters in a city grappling with high living costs.
image source from：timesofsandiego
