What do renters need to know about utilities, their
responsibilities, and what the landlord could or should pay for? If this is
your first time renting an apartment, take a look at what you need to know
about gas, electric, water, and other utility services.
What Are Utilities and Why Do You Need These
Services in an Apartment?
Utilities include the basic services necessary for you to
live comfortably in your new apartment. The primary utilities that most renters
need include electricity, water and sewage, trash, and heating fuel. Private
companies and some municipalities or cities supply utility services to
residents—including homeowners and renters.
Without utility services you couldn't use many types of
electronic devices, see easily in your apartment at night, have a cool home in
the summer, have a warm home in the winter, flush a toilet, take a shower, or
wash your hands in the sink.
Do All Apartments Have All of the Utilities?
Every apartment has some of these basic services. Electricity,
water, and sewage are necessary to live in your new home safely and
comfortably. But other utilities may vary. Different apartments and
free-standing homes have different types of HVAC systems. For example, while
air conditioners all require electricity and most heaters also use this energy
source, some heating systems also require another fuel source. This could
include natural gas, propane, or heating oil.
Who Pays for the Costs of Utilities?
The answer to this question depends on the landlord or property
management company and the terms of your lease.
Some apartments come with all utilities included. This
means the monthly rent includes the price of electricity, water and sewage,
trash, and heating fuel. The renter won't have to contact utility companies,
set up individual accounts, or pay individual utility bills. A
utilities-included approach is attractive to renters who like the convenience
of this option or don't want to worry about potentially paying high electric or
HVAC bills.
Other apartments may require tenants to pay for all or some
of these services in addition to the rent. This makes it important to talk to
your would-be future landlord about utilities before you sign a lease. The
lease should specifically state which utilities (if any) you are responsible
for paying.
The specific utilities the landlord supplies and the tenant
pays for may also depend on the state. Each state has its own rental utility
laws. For example, Kentucky landlords must provide tenants with water
(including hot water) and heat, according to the American Apartment Owners
Association.
How Much Will Utilities Cost?
The cost of the utilities depends on the specific service
or type of fuel, the size of the apartment, and the way you use the service. If
you keep the lights on 24-7, plug electronic devices into every outlet, use
multiple fans, or use a window air conditioner in the summer, it's likely that
you would have higher electricity bills than a renter who uses less energy.
Along with the amount of fuel or way you use the utility,
the price you pay for each service will also depend on the current market rate.
According to the U.S. Energy Information Administration (EIA), in 2022 the
average cost of residential electricity was 15.12 cents per kilowatt hour
(kWh). This price varied from state to state, with a high of 39.85 cents per
kWh in Hawaii to a low of 8.24 cents per kWh in Wyoming.
The EIA notes that the type of fuel, the demand for the
fuel, power plant costs, the transmission and distribution system, weather conditions,
and state or local regulations can affect the price consumers pay for
utilities.
Are
you ready to rent your first apartment? Contact
Montgomery Realtors
for more information.
