Is it legal for a landlord to average the cost of utilities?
This is a locality issue. Some places allow it and others don’t. I know in Pennsylvania for utilities each unit must be metered differently or it is the landlord’s responsibility to pay the utility. This doesn’t mean that the landlord can’t just charge a higher amount of rent and say “utilities included”, which is usually what happens here. For California specifically, it is legal. Specifically: Shared utilities If the utility meter for your rental unit is shared with another unit or another part of the building, then the landlord must reach an agreement with you on who will pay for the shared utilities. This agreement must be in writing (it can be part of the rental agreement or lease), and can consist of one of the following options: * The landlord can pay for the utilities provided through the meter for your rental unit by placing the utilities in the landlord’s name; * The landlord can have the utilities in the area outside your rental unit put on a separate meter in the landlord’s