In the apartment rental market, there are two types of features you can get when it comes to utilities… Utilities Included or Utilities Not Included.
While at first glance, the topic seems pretty straight forward, but it can come with some unexpected surprises if you have never rented a place with Utilities Included before.
You may get everything you paid for and more, but you also may end up with MORE expenses than you wanted.
I am going to walk you through the ins and outs of renting an apartment with Utilities Included, what that means, how it works and is it the right fit for you?
Are Utilities Included In Apartment Complexes?
Not all apartment complexes come with Utilities Included. In the offering of the apartment unit, or on the lease, it will stipulate whether the apartment comes with Utilities. If the offering doesn’t specifically say “Utilities Included” then assume it doesn’t.
Some apartment complexes offer Utilities Included because it makes it very simple for the apartment complex and for the tenant themselves. All their bills are consolidated into an estimated flat rate per month charge, that is rolled right into the cost of your monthly rent payment. It is easy, clean, but not always cheap.
Because the complex has to estimate how much of the utilities such as gas and water and electricity you are going to use in a given month, most complexes are going to charge enough to make sure that the expenses they are paying out each month for utilities covers the cost.
However, because all the buildings are essentially charged together, some tenants lack of use make up for other tenants overuse and it equals out to a monthly estimate which is then rolled into the one cost you are paying for rent.
When you are doing a search for an apartment online, one of the main things you can filer for is “Utilities Included”. When this box is selected, only those apartment complexes that come as a package with Utilities Included are shown.
If the apartment complex IS offering ‘Utilities Only’, make sure you read down the listing to see exactly WHAT utilities are covered. Sometimes, apartment complexes have different ideas of what Utilities mean to them.
A listing that has just sewer and water covered shouldn’t really be classified as a ‘Utilities Included’ offering, but that is why you need to be aware of how these apartments are listed so you avoid getting burned.
Is It Better To Get An Apartment With Utilities Included?
The people who tend to be attracted to a Utilities Included offer are people who don’t want their life eaten up by paying tons of monthly bills and it is worth it to them for a price to just have everything taken care of.
It isn’t necessarily a “better or worse” situation, it’s just what you prefer and what you are looking for in an apartment experience when you start searching. Do you have a really hectic life and barely have any time to yourself?
Then maybe Utilities Included is something that might sound attractive. The same thing if you are a retiree. You may not want to spend the time and hassle and stress of keeping all the bills straight, and having the same people handle it as handle your rent may be the perfect match!
However, if you are a penny pincher, or have plenty of free time, then having Utilities Included probably isn’t going to be worth your time. Yes, it can be convenient, but remember that there is no free lunch in life, someone is paying for it somewhere.
The same thing occurs when you are dealing with apartment complexes that include utilities. Yes, all your bills are rolled into one monthly payment you can just have auto-deducted from your bank account and you never have to worry about paying anyone besides paying your rent, but you are going to pay above and beyond what you would pay had you just sat down and wrote the checks yourself.
That doesn’t mean though that Utilities Included can’t be a deal!
When apartment complexes are running specials, mainly during certain times during the year that have slow move-in rates, managers and landlords will often times have specials to entice people to come live with them. This is the perfect time to take advantage of those deals at places that offer Utilities Included.
A good deal at a complex with Utilities Included can make sure all of your living costs are fixed, you know what they are going to be, FOR SURE, month to month for at least a year, no matter what!! This can be super attractive as well!
There is no right answer to whether it is right for you or not. Just know that it tends to be a bit more expensive when Utilities are included, but it DOES make it easier when the bills come around.
What Does ‘Utilities Not Included’ Mean?
If an apartment listing has the words ‘Utilities Not Included”, the landlord of that complex wants potential tenants to know that the cost of rent does not include utilities.
Basically, what is going on here are landlords differentiating themselves from complexes that offer Utilities Included. The price for rent is just that, the money you are willing to give in exchange for the unit itself. Any utilities that you use, you will have to pay for, on your own. Nothing is rolled into the price of rent.
While apartment complexes that DO offer utilities included TEND to be more expensive on average, having the complex not offer utilities doesn’t send any sort of message or hint.
All the way from the cheapest to the most expensive apartments in the world can be without Utilities Included, having that designation doesn’t mean your apartment complex is less than.
It just means they choose to let the tenant choose what services they need and want and let them pay for those themselves.
How Much Do Utilities For Apartments Cost?
On average, when you include gas, water, electricity, sewer, and trash, expect to spend a couple hundred dollars a month in suburban areas, and more than that in high-density urban areas.
Knowing how many of these utilities you are actually going to get for the one price is what you need to be concerned about, though.
Remember at the beginning of the article when I told you to make sure you scroll down the page when you are searching for apartments to SEE what all utilities are included in that? There is a reason for that.
Some apartment complexes Advertise that they have Utilities Included, but maybe this means just water and sewer. Or maybe electricity and trash. Who knows. Each apartment complex can decide their own terms, there is nothing preventing them from coming up with whatever kind of package they are allowed to under state and local law.
If you are EXPECTING everything to be included, make sure that you KNOW that’s the case. When you add up gas, electricity, water, sewer, and trash, you are more than likely talking a couple hundred bucks a month, AT LEAST, when it is all said and done.
On top of that, you are going to have to pay for internet and TV if you want it, and any other online service or phone tech you want to use. Some apartment complexes have a good deal for cable tv that they have negotiated with the cable provider, but none will pay your cell phone bill.
If you are trying to do the math and figure out if Utilities Included are worth it, just add up your last month’s Utility bills for where you are staying now. Chances are, they are going to stay pretty much the same unless your move is to someplace totally different than where you are right now.
If the total number you are paying is about what the apartment complexes are charging above and beyond the normal base rate for similar apartment complexes in the area, then it may be a good deal. But if you see that you are paying hundreds of dollars or more each month just to have your bills essentially consolidated, there is probably a better use for your time and money elsewhere.
In the end, you need to ask yourself the question, “How much money am I willing to spend to have all my utility bills come as one easy monthly payment?” If that amount is more than you are wanting to spend, in total, for an apartment each month, then don’t do it.
However, if that amount fits into what you want to spend, check it out. Call the manager and ask why people are attracted to Utilities Included at their apartment complex, any problems they have had with the system, and what people at the apartment complex think about it. You will no doubt get some really good first-hand information you can use to finalize your decision.
Whether or not you end up renting an apartment with Utilities Included or not is a personal choice based on your own, personal situation and needs. If having your utilities rolled into your monthly rent payment is cost-effective and easy on your busy schedule, then by all means rent one with the Utilities Included.
However, if the convenience prices itself out of your budget, don’t fret, just write your own checks!
