Renting an apartment for the first time can be an exciting experience! However, it is important to also keep in mind that there will be different costs associated with renting. Keep reading to find out about the monthly bills you will have to pay when renting an apartment.
Once you move into your apartment and have stayed there for a month, you will need to make your first rent payment. Rent is usually due the first of the month, every month, at the agreed-upon rent amount listed on your lease. Most landlords/property management companies will ask that you pay rent via a check, or through an online portal. Some places may allow you to make a cash payment for rent, but that is not too common.
Most leases are year-long or more, while others can be six months or you may be able to rent from month to month. The good thing about a longer lease is that your rent amount will be locked in until renewal. But you will not be able to move out without breaking the lease agreement—which can be very expensive. A shorter lease will give you more freedom to move, but rent may go up quickly.
Your monthly rent will vary depending on where you are and the type of property you are renting. For example, renting a unit in an apartment complex is usually cheaper than renting a single family home. Rent in New York for a one bedroom apartment usually ranges from $2000 or more, while rent for the same-sized apartment in Columbus, Ohio, may be as low as $900.
Sometimes your landlord or property manager may take care of some of the utilities, but that is never guaranteed. And so, it will be smart to budget all utility costs into your monthly bills. Each month you should budget for:
Average utility costs in the US are around $240 for apartments. You can definitely cut down on these costs once you move in, but it will be helpful to factor these averages into your budget before you commit to a lease. It is important to pay your utilities on time, because utility payments may show up on your credit reports.
Your security deposit will be a one-time cost you must pay when you first move in. It will be close to one month’s rent. This deposit will be returned to you when you move out, as long as there isn’t any damage to the property. If your landlord/property manager determines they need the money to take care of significant repairs, they have the right to keep that money. This will likely be the most expensive of other upfront costs when renting. When paying your security deposit, most places will also ask you for the first month’s rent.
When renting an apartment, one of the key things you need to budget for is utilities. In addition to paying monthly rent, you’ll likely have to cover expenses like electricity, gas, water, and internet separately. But what about your light bill – is that included in rent or another cost you’re responsible for?
Many renters, especially first-timers, find apartment utility bills confusing. Let’s break down exactly how lighting expenses typically work, what you can expect to pay, and tips to reduce costs.
Who Is Responsible For Electricity Bills In Rental Units?
When renting an apartment there are three main scenarios for who covers electricity expenses
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Option 1 Electricity included in rent. Some apartments bundle electricity into the monthly rental rate so tenants don’t pay it separately. This is more common in income-based housing.
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Option 2: Separate electric billing. The standard in most apartments is that the utility company sends you a monthly electric bill based on usage, which you pay directly.
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Option 3: Rent plus electricity fee. The landlord bills an additional “electricity fee” along with rent to cover utility costs.
The lease agreement should specify if electricity is included or not. If it doesn’t mention it, assume you’ll be billed separately.
What’s The Typical Cost Of Electricity In An Apartment?
If you’ll be paying electric bills on your own, an important question is how much should you budget? Costs vary based on factors like:
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Location – Utility rates differ by city and state.
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Unit size – More bedrooms means higher bills.
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Number of occupants – More people equals more usage.
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Your energy habits – Do you blast the AC or are you eco-conscious?
Here are some estimates for average monthly costs:
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Studio apartment – $30 to $70
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1 bedroom apartment – $50 to $100
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2 bedroom apartment – $75 to $150
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3 bedroom apartment – $100 to $200
Ask the landlord for prior bills to get a sense of real costs in that unit. You can also use sites like ElectricityLocal.com to estimate your potential bill.
Tips To Reduce Electricity Bills
Here are some tips to cut energy costs in your apartment:
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Use LED light bulbs – They use far less power than traditional incandescents.
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Open blinds – Rely on natural daylight to reduce artificial lighting.
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Install smart power strips – These cut phantom draw when devices are off.
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Unplug chargers when not in use – They still consume energy even when idle.
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Use fans – Run them on high before lowering the AC.
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Change AC filters monthly – Dirty filters make it run longer.
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Set thermostat higher – 78°F is often comfortable for cost savings.
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Close windows and doors – Prevent cooled air from escaping.
Following some of these easy tips can save $10 to $25 per month off bills!
Who Provides Light Bulbs In A Rental?
When it comes to interior lighting, there’s often confusion over who provides bulbs – landlord or tenant. Here are the typical responsibilities:
Tenant provides:
- Standard bulbs for fixtures like overhead lights, lamps, vanities. These are considered basic supplies renters should own.
Landlord provides:
- Hard-to-reach bulbs like fluorescents or high ceilings.
- Bulbs in common areas like hallways.
Of course, check your lease, as some landlords include all bulbs. But expect that you’ll supply basic bulbs for your unit.
Steps To Establish Electric Service In Your Name
If you need to open your own electric account, here’s the process:
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Choose a start date – When you want service to begin, typically shortly before move-in.
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Contact the utility company – Call the provider for your area to start new service.
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Provide personal information – They’ll need your SSN, date of birth, etc.
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Give them the address – Provide the exact rental unit address.
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Pay a deposit – Expect to put down an upfront deposit if you have no credit history.
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Schedule install – Some companies may need to send a tech to physically turn power on.
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Provide landlord info – They may want contact details to verify your lease.
Once set up, the electric should stay in your name during your entire tenancy. Make sure to cancel service when you move out to avoid liability.
Other Utility Expenses To Budget For
In addition to electricity, most standard apartments require you to cover:
Gas – For powering the furnace, hot water heater, and stove. Budget $20 to $50 per month depending on usage.
Water – Expect a water/sewage bill around $30 to $100 monthly.
Waste removal – Garbage pickup averages $20 to $40 depending on the frequency of service.
Internet – Plan on $40 to $80 per month for decent broadband speeds.
Cable TV – Optional, but averages around $50 to $100 for a bundle with high speed internet.
So make sure to factor in these other likely utility costs when budgeting. Electricity is just one piece of the puzzle.
Answers To Frequently Asked Questions
Can the landlord shut off my power if I don’t pay the electric bill?
No, only the utility company can shut off service for non-payment. But failing to pay may violate your lease.
What if my roommate doesn’t pay their share of the electric bill?
You are jointly responsible for covering the full amount. Try having just one person handle bills and Venmo requesting the others.
What’s the cheapest electricity provider in my area?
Comparison sites like ElectricityLocal can help you identify the most affordable electric plans and rates.
Is it cheaper to bundle internet with electricity?
Yes, providers usually offer a discount when you bundle multiple services together in one package deal.
What happens if I move out but forget to cancel electric service?
You could be liable for usage by the next tenants. Always make sure to contact the utility company and terminate service.
The Bottom Line
When renting an apartment, expect to pay for electricity, lighting, and other utilities separately in most cases. Follow the money-saving tips above to control costs. And make sure to budget for higher bills during peak summer and winter usage. With the right preparation, you can make sure utility expenses don’t derail your monthly budget as a renter.
How To Be Successful When Renting Your First Apartment
If this is your first time renting an apartment, there will definitely be new monthly expenses and costs to juggle, which may be challenging on your first go. The good news is that with the right tools and strategies, you can ensure getting through a lease successfully. Here are some things you should consider doing before or after moving in:
Pet Fees (If Applicable)
If you have any furry friends you are bringing into your new apartment, there may be monthly expenses attached when you pay rent. Pet fees, a monthly fee for having pets are more common in apartment complexes and condos than in homes. They can range anywhere from $20 to $50 per pet per month. There may also be an additional fee added to your security deposit if you have pets.
