What You Should Know About Utilities-Included Apartments

Is having utilities included in the lease always better?

When apartment hunting, it's important to understand the different costs you commit to before you sign a lease. The most obvious is rent, but also includes your commute (the cost of your TIME), and any additional apartment fees. One of the many factors to consider when renting an apartment is the cost of your utilities. It can be difficult to gauge the monthly cost of utilities in a rental because they fluctuate for many reasons, including usage. With the rising costs in today’s economy, it is always important to find ways to save money. Renting an apartment where utilities are included may sound especially appealing, but before you limit your search weigh the pros and cons so that you understand what it actually means to you as a renter.

What's Covered? It depends.

When you lease a utilities-included, or all bills paid, apartment you are agreeing to pay a monthly payment to your landlord that includes your rent plus a flat fee for basic utilities. Your landlord is responsible for paying the basic utility costs for your apartment directly to the local utility company. Heat, water, garbage, and electricity are often included, but every landlord will define basic utilities differently. It is important that you reference your lease agreement for a clear definition of which bills are covered.  

Fewer bills means keeping it simple.

One of the most satisfying benefits of renting an all-bills-paid apartment is that there is only one monthly bill. You will pay the same amount for rent each month to your landlord, minus the multiple bills to several utility providers on different due dates. Budgeting your monthly housing expenses will also get a whole lot easier. Renting an apartment where utilities are included can also save you money in extra move-in fees. Not having the responsibility to connect services will eliminate paying any activation fees or additional deposits. It can also be beneficial to you if you have any unresolved issues with your local utility company or have a poor credit history.

Is having utilities included in your rent too good to be true?

While renting a utilities-included apartment can sound very appealing to a renter on a budget, there are also several disadvantages to consider. Traditionally it is the older apartment communities that offer the convenience of an all-bills paid service. They also have become very scarce and therefore limited in inventory.  It can be very difficult to locate a utilities-included apartment with availability, especially if you are relocating from out of state and have a time-sensitive move-in date.

In major metropolitan areas like San Antonio and Austin, these types of properties are very rare.  Often times they are also not advertised. So, it might be difficult to find an apartment with all the amenities you want that also covers utilities in your monthly rent. If you are looking for an all-bills-paid apartment, working with an experienced apartment finder at Perch who is familiar with apartments available in your area is your best option.

*A version of this article previously appeared on Angie’s List.