How do I calculate a tenant's electricity bill from a meter?

Subtract the previous reading from the current reading to get consumption, then multiply by your agreed rate. For example, (1,142 − 1,000) × €0.15 = €21.30. Put the reading, the rate and the total on the invoice so the tenant can check it.

Can I estimate electricity usage instead of reading the meter?

You can, but you shouldn't. Estimates are the main cause of disputes. A meter exists so you never have to guess — read it each billing period and bill the actual difference.

What if the new meter reading is lower than the previous one?

A reading can't legitimately go down. If it does, the meter was misread or replaced. Investigate before billing — never charge a negative consumption.

How should I handle a day/night (two-tariff) meter?

Treat each zone as its own line with its own rate. The method is identical — reading minus previous, times rate — you just do it twice.

What rate should I charge my tenant for electricity?

Match what you actually pay the utility, plus any margin agreed in the tenancy. When prices change, update the rate going forward only — don't re-bill past months at the new rate.

Should electricity be a separate line on the invoice?

Yes. A single lumped 'utilities' figure invites suspicion. Showing consumption × rate as its own line is what keeps the tenant's trust and prevents arguments.

How to bill tenants for electricity, fairly and correctly

Charging a tenant for electricity should be simple: they pay for what they used, at a rate you both agreed on. Yet most disputes come from one of two habits — estimating the bill, or hiding the math behind a round number. Here is the method that keeps everyone honest.

Bill actual consumption, not an estimate

A meter exists so you never have to guess. Every billing period, record the meter value. The amount the tenant used is the difference between this reading and the last one:

Consumption = current reading − previous reading

Then the charge is that consumption multiplied by your rate:

Line total = (reading − previous) × rate

That is the whole formula. No estimates, no "roughly," no surprises.

A worked example

Say the tenant's previous electricity reading was 1,000 kWh and this month it reads 1,142 kWh, at a rate of €0.15 per kWh:

Consumption = 1,142 − 1,000 = 142 kWh
Charge = 142 × €0.15 = €21.30

You put €21.30 on the invoice, next to the reading and the rate, so the tenant can check it themselves. That transparency is what prevents arguments.

Set the rate clearly — and keep history

Your rate should match what you actually pay the utility (plus any agreed margin), and it should be written into the tenancy. When the utility raises prices, change the rate going forward — never re-bill past months at the new rate. Keeping rate history means an old invoice always reproduces exactly.

If your meter has day/night zones, treat each zone as its own line with its own rate. The method is identical; you just do it twice.

Common mistakes to avoid

Estimating instead of reading. "About the same as last month" is how trust erodes. Read the meter.
Billing a reading lower than the previous one. A reading can't go down. If it does, the meter was misread or replaced — investigate, don't bill a negative.
Rounding away the detail. A single "utilities: €25" line invites suspicion. Show consumption × rate.
Re-billing old periods at a new rate. Lock the rate that applied when the reading was taken.

How FixRent does this for you

FixRent turns a meter reading into a correct line automatically. You enter this month's number; it works out consumption against last month's reading and computes (reading − previous) × rate, folding it straight into the tenant's invoice alongside rent and any fixed charges. Every figure is shown, so you and your tenant always agree on the total — and a late bill is flagged the moment it's overdue.

That is the whole point: bill what was used, show the math, move on.