What Utility Bills Do You Pay When Renting?

Renting a home involves financial obligations beyond the advertised monthly rent. Utility bills represent a significant ongoing expense that can greatly impact your overall budget. Clarifying which utilities you are responsible for paying is a crucial step for managing finances and avoiding unexpected costs.

Common Utility Bills Renters Typically Pay

Renters are commonly responsible for several utility bills covering essential services. Electricity, which powers lighting, appliances, and often heating or cooling, is almost always a tenant’s responsibility and typically represents the largest portion of a utility bill. The average monthly electricity bill in the U.S. is around $150. Your consumption directly influences this cost, with larger units and more occupants generally leading to higher bills.

Natural gas is another common utility, primarily used for heating, cooking, and hot water. The average natural gas bill for a U.S. household is around $80 per month, though this fluctuates with seasonal usage, with colder months seeing higher heating costs. Water and sewer services are also frequent responsibilities for renters, covering incoming clean water and wastewater removal. The average monthly water bill can range from $28 to $116, while sewer bills average around $55 per month.

Beyond these, trash collection is often a separate bill, though sometimes a flat fee charged by the municipality. Internet and cable television services are also typically the renter’s responsibility. Internet averages around $70 per month, and cable can add $90 monthly, depending on the chosen package. These services are usage-based or package-dependent, meaning costs vary significantly based on individual habits and selections.

Utilities Often Included in Rent

Some rental properties, particularly in multi-unit buildings, may include certain utilities within the monthly rent payment. Water, sewer, and trash removal are among the most common utilities covered by landlords. These services are often tied to the property itself and may not be individually metered for each unit, which simplifies billing for tenants.

In some cases, heating or hot water might also be included, especially in older buildings with central heating systems that cannot be easily separated by unit. Less frequently, a landlord might include basic internet or cable services as an amenity to attract tenants. When utilities are included, the landlord manages the accounts and pays the providers directly, simplifying financial management for the tenant.

Understanding Your Lease Agreement

The lease agreement is the definitive document outlining utility responsibilities between a tenant and landlord. It legally binds both parties and specifies which utilities the tenant must pay for and which, if any, the landlord covers. This clause provides clarity on utility costs, helping tenants budget effectively and avoid unexpected expenses.

Carefully reviewing the lease before signing is essential. Look for sections detailing “utilities,” “services,” or “tenant responsibilities.” The agreement should clearly define how costs are allocated, especially in shared living situations, to prevent disputes. If any terms related to utilities are unclear, it is important to seek clarification from the landlord or property manager before committing to the lease.

Setting Up and Managing Utility Accounts

Once the lease agreement clarifies which utilities are your responsibility, the next step involves setting up and managing these accounts. This process generally requires contacting each utility provider individually, typically two to four weeks before your move-in date. You will need to provide personal identification, such as a driver’s license, and proof of residency, like your signed lease agreement. Some providers may require a security deposit, particularly if you have no prior payment history with them or if your credit history warrants it.

When contacting providers, you will need to specify your new service address and the exact date you wish for services to begin. It is often advisable to schedule activation for a day or two before your actual move-in date to ensure services are active upon your arrival. Understanding the billing cycle for each utility is important, as most providers bill monthly, with payments typically due around 21 days after the bill is sent. Many utility companies offer online account management and various payment methods, including automatic payments, which can help in managing due dates and avoiding late fees.