In a unanimous vote, the San Diego City Council advanced a new law to stop landlords from overcharging tenants for city utilities like water and trash. The measure ensures tenants won’t pay more than the actual utility bill and gives them the right to review the charges. The law is expected to take effect by July or August.

Council Votes Unanimously

On Monday, the San Diego City Council unanimously approved the first reading of a law banning landlords from billing tenants more than the actual cost of city-provided utilities. Known as the “residential tenant utility charges ordinance,” the measure passed 8-0 with Councilmember Jennifer Campbell absent. A final vote and mayoral approval are pending before it becomes law later this summer.

What the Law Covers

The ordinance applies to utilities provided by the city, including water, stormwater, and trash services. While property owners can continue passing on these costs to tenants, they are prohibited from charging more than what is billed by the city. It also blocks the addition of fees from third-party billing services.

Transparency for Tenants

The proposed law gives tenants the right to view a copy of the utility bill issued to their landlord. This measure aims to promote transparency and ensure tenants aren’t unknowingly overpaying for essential services.

Push for Fairness

“San Diego is in the middle of a cost-of-living crisis, and families across our city are doing everything they can to stay afloat,” said Councilmember Sean Elo-Rivera, who led the initiative. “The last thing tenants should have to worry about is being ripped off for essential services like water. This ordinance is about fairness, transparency, and making sure San Diego works for the people who live here, not just those looking to profit off them.”

Renters Under Pressure

With half of San Diego’s housing stock made up of rentals and vacancy rates low, the rental market remains tight. The average asking rent in the city is $3,096, compared to a national average of $2,024, based on Zillow data. Adding to the financial stress, the region’s Consumer Price Index hit 3.8% in March, significantly higher than the national rate of 2.4%.

Community Support and Pushback

The ordinance drew praise from tenants and housing advocates during the council meeting. Many expressed gratitude for the council’s action. However, not everyone welcomed the proposal. One property owner criticized it as government overreach and said small landlords would face new administrative burdens. He urged the council to consider exemptions for landlords with fewer than 10 units.

Final Steps and Outlook

The ordinance will return for a second reading, and if approved again, it only needs the mayor’s signature to become law. Supporters argue it is a necessary protection in an increasingly unaffordable city. “While I do understand some of the concerns from landlords,” Elo-Rivera responded, “I will say that the inconveniences of owning multiple properties pale in comparison to the inconveniences that are faced by those living paycheck to paycheck.”