Are Utilities Included in Apartment Rent?

When deciding which apartment to live in next, your budget usually factors into the process. You know you’ll need to pay rent each month, but what other costs should you add to your monthly budget? Most apartments cover some, if not all, utilities when calculating the rental rate. To indicate this coverage, many apartment listings will say “utilities included,” but that doesn’t necessarily mean all utilities are included in the rent. As a result, you will likely incur some out-of-pocket expenses in addition to your monthly rent. 

The more utilities your rent includes, the higher the rate, but on the flip side, you might not need to worry about a surprise gas bill in the middle of a cold winter. It’s important to know which utilities are and are not included so that you can set a more accurate budget, create accounts, and schedule appointments to activate service before your move-in date.

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What Utilities Are Included in Rent?

Most often, landlords will cover the charges for essential services, such as water, sewage, and trash removal. Sometimes, landlords will also pay for heating and hot water. Many newer luxury apartment buildings now incorporate Wi-fi into the rental rate as well, so their residents need not receive a separate internet bill.

A major benefit of including utilities in the rent is that it simplifies the process. You take on fewer bills and a flat rate each month. However, as mentioned above, you pay higher rent to offset those costs, meaning that you don’t actually get out of paying them. 

One potential downside to this system is that landlords will often cap the utilities at a certain cutoff point and make you responsible for any usage beyond the monthly allotment. Thus, included utilities do not necessarily free you from remaining conscious of how much you consume. Check the terms of your lease carefully in advance so that you know what to expect as you prepare your budget.

What Utilities Are Not Included in Rent?

Rental prices frequently do not include electric, gas, internet, and cable. For these services, you’ll need to set up your own account, pay deposits, schedule activation, and pay these bills separately.

Internet and cable are typically charged at a fixed monthly rate, whereas electric and gas usage varies month by month and seasonally. Many electric and gas companies will allow you to set up an average payment so that you’ll pay approximately the same amount each month throughout the year. This option can help you set up a more predictable monthly budget.

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How to Know If Utilities Are Included in Rent

Ask which utilities are included during your apartment tour. You can also find out in your rental agreement, which you should peruse carefully because it contains the final and legally binding terms that you agree to the moment you sign. 

If you still feel confused about which utilities are and are not included in your rent, simply talk to your landlord or property manager. They might even have a list of recommended and available providers, along with contact information, to help make the task of setting up new accounts easier. For any services not included, ask for a rough estimate based on what tenants there typically pay to help you better plan for those costs.

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