Finding an apartment
Is an apartment with utilities included a better deal?
Updated By the Housing Rocket moderators
Short answer
Sometimes. Utilities included makes your costs predictable and can be a real saving in older buildings with expensive heat, or for people who run air conditioning a lot. But landlords price the utilities into the rent, so compare the all-in cost against a similar unit plus realistic monthly utility bills before assuming it is cheaper.
"Utilities included" means different things in different listings. Ask exactly which are covered: water, sewer, trash, gas, electricity, heat, air conditioning and internet are all separate. Many listings include only water and trash.
- Ask the landlord for typical monthly bills for the utilities you would pay, by season.
- If the landlord does not know, ask a current tenant, or check whether the local utility can share average bills for the address.
- Add those estimates to the rent of the non-inclusive unit and compare the totals over 12 months.
Also read the lease for caps. Some inclusive leases limit how much electricity or heat is covered and bill you for anything over it. Others split a building's total bill among units based on a formula, which is not the same as having it included.
Utilities included is often the better choice for people who work from home or live in very hot or cold climates. If you are rarely home and keep the thermostat modest, paying your own bills is often cheaper.
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