How Utility Trends & Legislation Are Reshaping Rental Property Management

Making Sense of a Changing Utilities Landscape

Utility costs have long been a wildcard in rental property management. But in 2025, the stakes are higher than ever. A mix of inflation, infrastructure strain, regulatory shifts, and climate goals are converging to create uncertainty—and opportunity—for housing providers.

Energy Prices Are Likely to Climb

Most analysts expect utility prices to continue trending upward. According to the U.S. Energy Information Administration (EIA), residential electricity prices rose by 5.5% in 2023, and early 2025 forecasts suggest further increases as states accelerate clean energy investments and grid modernization. Natural gas remains particularly volatile, with price spikes tied to international demand, supply chain pressures, and extreme weather.

For housing providers, these cost fluctuations translate directly into tighter margins—and in some regions, more tenant inquiries about billing transparency.

Federal Legislation and Regulatory Trends

Although no sweeping utility-related housing legislation has passed at the federal level this year, multiple proposals are under review. Key themes include:

• Decarbonization Incentives: Expect more funding and tax credits for energy-efficient retrofits, particularly in multifamily properties.
  
  
• Tenant Protections: Legislators are increasingly exploring rules that require transparent and fair utility billing for renters, particularly in high-cost metros.
  
  
• Data Requirements: Some HUD and EPA programs are piloting initiatives that would require more detailed utility reporting, especially for subsidized housing.
  
  

Additionally, many states are rolling out or tightening “benchmarking” requirements—mandating housing providers track and report utility usage. While this can be a burden, it also presents an opportunity for owners to identify inefficiencies and reduce costs.

What This Means for Housing Providers

To stay ahead, forward-thinking housing providers are taking a more strategic approach to utility management. That includes:

• Tracking: Monitoring usage across properties to identify leaks, inefficiencies, or overages.
  
  
• Education: Engaging tenants in conservation goals, whether through signage, digital tools, or building-wide challenges.
  
  
• Automation: Streamlining utility billing and recovery to avoid manual errors, delays, and friction with tenants.
  
  

The Bottom Line

Utility management is no longer a back-office task—it’s a key lever for profitability, sustainability, and tenant satisfaction. As costs rise and regulations evolve, owners who adopt smarter systems and proactive strategies will be best positioned to thrive.