Ohio bill would put responsibility of unpaid utility bills on renters rather than landlords
COLUMBUS, Ohio (WCMH) – Ohio lawmakers are considering legislation that would let landlords off the hook for unpaid utility bills and put the responsibility on renters.
House Bill 93, sponsored by Reps. Mark Johnson (R-Chillicothe) and Riordan McClain (R-Upper Sandusky), would require cities to collect unpaid utility costs directly from renters.
Currently, Ohio law allows municipalities to collect overdue utility bills – such as water, sewer and trash –- from "an owner, tenant, or other person who is liable to pay the rents or charges." Johnson said this often falls on landlords rather than renters.
“To me, it's personal responsibility,” Johnson said. “You run up the bill, it's your job to pay it.”
According to Johnson, he felt compelled to support the bill after talking with landlords who said they had been hit with utility fees exceeding $1,000 after a tenant had moved away without paying.
“A lot of them (renters) know the law and they do this repetitively and often run up huge water bills because the cities do not go out and valve the water off like your electric company takes your meter if you don’t pay the bill,” Johnson said.
Johnson said the current system does not only negatively affect landlords but can also result in higher costs for tenants.
“It increases rental costs,” Johnson said. “It’s a common business practice. If a landlord is hit with this, they’re going to recover it with [higher] rent for everybody.”
However, multiple Ohio municipalities and city water departments are not on board with the bill. Andrea Yang of Greater Cincinnati Water Works said in written testimony that landlords are better positioned than utility entities to manage nonpayment risks through security deposits and tenant screenings.
“[Municipal utilities] have no knowledge or control over the lease terms including when the tenant has vacated the property, which makes it exceedingly difficult for the utility to pursue unpaid amounts from a tenant," Yang said.
Tyler Converse, president of the Ohio Association of Drinking Water Agencies, also testified against the bill, stating if it were to pass, water systems would likely require tenants to pay a security deposit before turning on the water service, adding an additional cost for renters. Converse also said unpaid costs will fall on utility companies, and therefore their customers.
“The cost of renters who skip out on delinquent bills will be passed on to all of the water systems’ customers, including residential, commercial, and industrial accounts,” Converse said in written testimony. “The rest of the customers will become responsible to cover the losses for the landlords’ benefit.”
A representative of the Ohio Municipal League, Rod Davisson, also critiqued the bill, claiming it violates cities’ home rule rights, which gives municipalities the power to create their own laws as long as they follow the state and federal constitutions. Johnson said he does not believe the home rule argument would hold up in court.
A similar bill passed the Ohio House in 2022 but did not pass the Senate. HB 93 passed the Ohio House in December, largely along party lines, with a majority of Republicans in support. The Ohio Senate Local Government Committee held a third hearing for the bill on Nov. 19.
Johnson said if the bill does not pass out of the Statehouse during this legislative session, which wraps up at the end of the year, he plans to reintroduce it in 2025.