Rent prices are always changing, and having utilities included might seem like an easy way to keep things simple. After all, knowing exactly what you’ll pay each month with no surprises sounds ideal, right? But are utilities included in rent? And if they are, what does that actually mean for you in practice as a renter? Read below to learn more.
Main Takeaways
- To know if utilities are included in the rent, your answer is simple: look at your lease (and local laws). If those dictate that certain utilities are included, they’re included.
How to Verify If Utilities Are Included in Rent on Your Lease
To verify if utilities are included in your rent, there’s one definitive place you should look: your lease. A lease serves as your manual to the rules of your lease. As property managers in Philadelphia, we know it’s critical for making sure you’re fully informed about which utilities are included in your rental. Here’s how you can verify what’s covered:
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Read the Lease Agreement Carefully
Like we mentioned, the first thing you should do is take a close look at your lease agreement. More specifically, keep an eye out for a section specifically regarding utilities and services—you’ll find that it’s usually labeled clearly in bold. Then, that section will hopefully tell you exactly what’s included in your rent and, conversely, what you’re responsible for paying separately.
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Ask For Clarity
If your lease doesn’t seem clear-cut or you have any questions, don’t hesitate to ask your landlord or property manager directly. After all, it’s better to be safe than sorry. Then, they can provide clarification and answer any questions about what utilities (e.g., water, gas, electricity, internet) are included.
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Check for Specific Keywords
Scan your lease for any keywords related to included services or additional charges. For instance, they may single out specific utilities or amenities (like trash collection or heating) as being included, but others (like internet or cable) might be your responsibility to pay separately.
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Look for Any Caps or Limits
Always read the fine print. Some rental agreements might cover utilities like water and electricity…but only up to a certain amount. However, if you use more than that, you might have to shoulder the extra amount. So, be careful. Be sure to understand these limits clearly, and try to avoid pushing those limits, if possible.
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Check Local Laws and Regulations
In some areas, there may be regulations that require landlords to include certain utilities in rent. For example, in some places, landlords must provide hot and cold water, maintain proper heating (minimum temperature of 68°F), and ensure trash and recycling services are available for tenants in multifamily units. At the same time, other utilities like gas, electricity, and sewer services may not be included in these laws. It varies. So, always do your due diligence and look at your location’s regulations.
Common Utilities to Consider When You’re Renting
When you’re renting, it’s essential for you to know which utilities are, or aren’t, typically included in people’s rent. These utilities can greatly impact your monthly budget, so knowing what to expect is a critical tool for helping you get ahead. Here they are:
Electricity and Gas
It goes without saying that electricity and gas are some of a home’s most essential utilities. They power your lights, appliances, heating, and other devices. Furthermore, their costs can snowball lightning fast. So, be sure to check if these are included in your rent or if you’ll need to pay for them separately.
Water
Water is essential for daily activities, from bathing and cooking to cleaning. As such, many landlords (and laws) include hot and cold water usage in the rent. It’s a staple. On the other hand, some rentals may require tenants to cover water costs, so never assume anything. Always verify what’s included in your lease to be absolutely sure.
Heating and Air Conditioning
As you can imagine, having stable heating and air conditioning is absolutely critical for your comfort and safety. You don’t want to be left lying in a puddle of your own sweat on a scorching day, or conversely, jittering down to your toes on a freezing one. Avoid these situations by ensuring you’re addressing any possible separate bills.
Sewer and Trash Removal
Proper waste management is non-negotiable for maintaining your home’s cleanliness and hygiene. Many times, landlords will include trash and sewer services as part of the rent, but again, it’s not guaranteed. Again, it’s wise to check your lease to ensure you’re covered.
Factors Affecting Whether Utilities Are Included
There’s no simple answer to the question, “are utilities included in rent,” since so many factors can impact it. Luckily, knowing what’s at play can help you be prepared. Let’s look at what affects this decision:
Property Type and Size
Different property types vary in regard to utility inclusion. In bigger buildings, like multifamily housing and apartment complexes, utilities are combined in the rent more frequently. This helps make management easier for landlords. By contrast, in single-family homes, the tenant is typically responsible for paying utilities because each unit can have its own utility meter.
Market Conditions and Rent Pricing
Also, your property market conditions can dictate whether utilities are included. In high-demand places, landlords could bundle utilities with the rent to attract tenants and be competitive. Whereas in areas where rent is lower or where there is a surplus of available units, landlords may separate utilities from the rent to keep their costs down. Essentially, it’s a matter of supply and demand.
Lease Provisions
Lease terms shape whether utilities will or will not be included. Sometimes, landlords will tack on utilities to make a rental more appealing, while in some cases they’ll put the responsibility on tenants. If you’re staying for a long time, you may even be able to negotiate who pays what.
Building Amenities and Features
A property’s amenities and features can also impact whether your landlord includes utilities in the rent. For example, if your building provides central heating, shared water systems, or community-wide trash removal, your landlord may bundle these utilities in the rent to simplify their management. However, if each unit has its own meter, tenants may need to pay for services like electricity, internet, or gas.
Local Laws and Regulations
As we discussed previously, in some areas, laws may require landlords to provide certain utility services. In some cases, they could have a landlord include certain utilities such as basic water or heating for habitability purposes. Look into your local rental laws to find out if utilities like water, garbage collection, or heating are typically included in rent in your area.
Pros and Cons of Utilities Included in Rent
Understandably, the idea of utilities being included in the rent sounds convenient. You won’t have to worry about paying the bills separately, which makes life that much simpler. However, it has its pros and cons, like most other things. Here, we’ll take a look at the good and the bad so that you can work out what’s best for you.
Pros
Pros
Predictable Budget
When the rent includes your utilities, you can allocate your finances confidently. You can rest assured that there you won’t be thrown off by unexpected utility costs throughout the month. In particular, this arrangement is beneficial during extreme weather, when electricity usage tends to increase significantly. And since utility costs are overall rising, securing this stability may pay off.
Payment Simplicity
Having one monthly transaction makes managing your payments much simpler. Rather than juggling multiple bills from multiple companies, you can make a single, straightforward payment. In turn, this effectively eliminates the hassle of managing various accounts.
No Late Fees
When the landlord manages the utility bills, you don’t have to worry about paying them late. Put simply? This means no late fees and one less responsibility on your plate. Out of sight, out of mind.
Cons
Higher Rental Rate
When your landlord includes utilities in your rent, your landlord likely will need to increase your rental rate to cover those bills. In other words, this makes your rent higher than it would be if you were paying for utilities on your own. Think of it as paying extra for the convenience of having everything in one bill. Sometimes, you might actually end up paying more than what you’d actually use, especially if the landlord charges based on average usage instead of what you need.
Luckily, there are ways you can save on your utility bills if you’re covering them, so you can always turn to those.
Affects Credit History
On the surface, having your utilities included in the rent might sound convenient. However, it’s a double-edged sword: it deprives you of your chance to build credit. On the other hand, when you pay utility bills directly, it enables you to build your credit history. So, in the long run, the added expenses you face now may actually pay off.
Limits Regarding Utility Usage
Since your landlord or property manager will take care of the bills, they might set rules around how much you can use their utilities. They could set specific limits, and if you go over those limits, you might have to pay extra fees. So, if you want the freedom to use your utilities on your own terms, it might not be a good idea.
Ready to Make Your Decision?
Now that you have a clear picture whether your landlord will include the utilities in your rent, it’s time to think about what’s ideal for your unique situation. Do you want to simplify your payments, or would you prefer to handle utilities separately to keep your rent lower and credit score possibly higher? Whatever choice you make, make sure to review your lease agreement carefully, ask questions, and know what’s covered so you’re prepared for your next rental experience!
At Bay Property Management Group, we’re here to help you navigate the ins and outs of renting. We offer transparent pricing, so you know where you stand, utilities and otherwise. Also, carefully craft lease agreements that work for your individual needs. To boot, we handle maintenance promptly to minimize any inconveniences. All in all, our job is to ensure you’re comfortable and satisfied with your rental experience, and we won’t rest until we achieve that. So, look at our listings today to find the perfect rental for you!
