Two common arrangements
Two structures cover most US rental situations:
- Landlord owns the tank, tenant pays for propane. Most common. The tank stays with the property; the tenant opens a dealer account and pays for deliveries. The landlord may or may not require a specific dealer.
- Landlord includes propane in rent. Less common, usually only for short-term rentals. The landlord pays the dealer; the tenant has no direct relationship with the supplier.
Questions to ask before signing
- Who owns the propane tank?
- Who pays for tank rent (if leased from a dealer)?
- Which propane company services the property? Can the tenant switch suppliers?
- Who pays for emergency service calls, leak tests after run-out, and regulator replacement?
- Are utility deposits required, and what's the deposit refund policy at lease end?
- What's the current per-gallon rate and contract type with the existing dealer?
What tenants should not be responsible for
Three items typically remain the landlord's responsibility under standard residential lease law (with state variation):
- Tank installation or replacement. Capital cost, not operating expense.
- Regulator replacement at end of service life.
- Leak repairs from system aging (as opposed to tenant damage).
If service is interrupted
Tenants in propane-heated rentals are entitled to functional heat as part of habitability requirements in most US states. If propane service is interrupted because the landlord failed to pay the dealer, you may have legal grounds to make the dealer payment yourself and deduct from rent — but procedures vary by state. Document everything in writing and consult a tenant advocacy group or state attorney general before unilateral action.
FAQ
Can I switch propane suppliers as a tenant?
Usually only if you own the supplier account (i.e. you, not the landlord, are the named customer on the dealer's books) and the tank is customer-owned by you or transferable. If the landlord owns both the tank and the dealer account, switching requires landlord consent.
What happens if I move out with propane in the tank?
Standard practice: the dealer prorates the remaining propane and refunds you for the volume left in the tank. Confirm the refund procedure with the dealer before your move-out date.