Setting Up Utilities in a Connecticut Rental Property: What Every Landlord Should Know
Why Utility Setup Matters for Connecticut Landlords
When you own a rental property in Connecticut, setting up utilities isn’t just a box to check, it’s part of protecting your investment and keeping operations smooth. Utilities like electricity, gas, and water are essential for tenant comfort, property preservation, and legal compliance.
However, many landlords make the mistake of assuming tenants will handle everything from day one. In reality, the way you set up and manage utilities, especially under your name or LLC, can make or break the efficiency of your rental business.
Step 1: Set Up Utilities in Your Name or LLC
Before a tenant ever moves in, all utilities should be established under your ownership, either in your personal name or your LLC’s name, depending on how the property is titled.
This ensures that:
You retain control over essential services.
There’s no lapse in electricity, gas, or water between tenants.
You can set up automatic reversion agreements (more on that shortly).
Why Your LLC Should Own the Utility Accounts
If your rental property is owned by an LLC, utilities should be too. Keeping the accounts under the LLC name maintains clean separation of liability and helps with accounting. This way, any issues such as unpaid balances or damage from service interruption are tied to the business, not you personally.
You can easily establish new accounts with Eversource, United Illuminating, Connecticut Natural Gas, or Aquarion Water (depending on your service area). When setting up, make sure to:
Provide your business entity name and EIN.
Confirm the billing address (your office or management address).
Enroll in online management portals for quick account oversight.
Step 2: Coordinate Tenant Transfers at Move-In
Once a tenant signs their lease, it’s time to transfer utilities into their name.
Your lease should clearly state which utilities the tenant is responsible for (typically electricity, gas, and sometimes water). Include the contact information for each provider and a specific deadline for the tenant to complete the transfer, ideally by the lease start date.
Pro Tip for Landlords
Ask tenants to provide confirmation numbers or screenshots from the utility companies once the transfer is complete. This protects you from being billed for tenant usage after they move in.
If your property is located in a multi-unit building where utilities are shared, you can still set up individual metering or use a Ratio Utility Billing System (RUBS) to divide costs fairly. Just make sure any shared billing practices comply with Connecticut Department of Energy and Environmental Protection (DEEP) guidelines.
Step 3: Protect Yourself with Utility Reversion Agreements
Here’s one of the most overlooked but powerful steps:
Setting up automatic reversion agreements with Connecticut’s utility providers.
A reversion agreement ensures that if a tenant moves out or stops paying, the utility automatically reverts to your account instead of being disconnected. This is especially critical in colder months when losing heat or water could cause frozen pipes, property damage, or liability issues.
How to Set This Up
Contact your provider directly and ask for their “Landlord Agreement” or “Reversion Program.” For example:
Eversource offers a Landlord Automatic Transfer of Service Program.
Connecticut Natural Gas (CNG) allows landlords to enroll for service continuation.
Aquarion Water Company provides Landlord Service Transfer Agreements for rental properties.
These programs protect your property by ensuring services stay active even if a tenant suddenly vacates or defaults.
Step 4: Handling Nonpayment and Service Interruptions
If a tenant fails to transfer utilities or pay their bills, you could face interruptions that impact both the tenant and your property.
In Connecticut, landlords cannot legally shut off or interfere with utilities to force payment or eviction. Doing so violates Connecticut General Statutes § 53a-214.
Instead:
Verify whether the account reverted to your name under your reversion agreement.
If not, contact the utility provider immediately to prevent disconnection.
Document the situation and send a notice to the tenant reminding them of their lease responsibility.
Keeping detailed records of communications and utility activity is essential for accountability and legal protection.
Step 5: Keep a Utility Setup Checklist for Each Property
Managing multiple Connecticut rentals? Keep a utility setup checklist handy for consistency.
A sample checklist might include:
✅ Electricity: Eversource or United Illuminating, account under LLC
✅ Gas: Connecticut Natural Gas, reversion agreement confirmed
✅ Water: Aquarion Water, landlord transfer program enrolled
✅ Tenant transfer verified with confirmation number
✅ Lease updated with utility terms and responsibilities
This not only simplifies onboarding new tenants but ensures that every property remains fully protected year-round.
Best Practices for Connecticut Property Owners
Always verify your reversion agreement status annually.
Keep utility account access centralized using one email or management platform for all accounts.
Provide tenants with a Welcome Sheet listing all relevant utility contact information.
Add a utility deposit clause in leases if tenants have a history of nonpayment.
Review local municipal regulations, since some Connecticut towns handle water billing directly through the city.
Conclusion: Protect Your Property, Simplify Your Process
In Connecticut’s competitive rental market, the most successful landlords aren’t just great at finding tenants, they’re great at managing operations behind the scenes. Setting up utilities correctly, under your name or LLC with reversion agreements in place, ensures that your property stays protected, compliant, and operational no matter what happens.
At the end of the day, it’s about minimizing risk and maximizing control. When your electricity, gas, and water are managed strategically, you’ll save time, money, and avoid unnecessary headaches, all while providing a better experience for your tenants.
✅ Pro Tip:
Want to learn more about utility programs for Connecticut landlords? Visit Eversource’s Landlord Automatic Transfer of Service page to enroll and safeguard your rental utilities.
