If you’ve been apartment hunting lately, you may have noticed “all bills paid” or “utilities included” popping up in listings more often. What exactly does this mean, and more importantly, is it worth it?
Like any housing decision, this arrangement comes with both advantages and trade-offs that vary depending on your personal situation, budget, and preferences. This guide breaks down everything you need to know about apartments with utilities included and whether they may be an option for you.
What are all-bills-paid apartments?
All-bills-paid apartments are rental properties where your monthly rent includes utilities and sometimes additional services. Instead of setting up separate accounts for electricity, gas, internet, and more, you pay one flat rate to your landlord each month. It’s like a Netflix subscription model for your entire living situation.
The specific bills covered can vary from property to property, but typically include:
- Electricity and gas
- Water and sewer services
- Trash and recycling pickup
Some all-bills-paid apartments go the extra mile and include internet, cable, or even premium services like gym memberships or parking.
Advantages of apartments with utilities included
Budget predictability
The biggest draw of all-bills-paid apartments is knowing exactly what you’ll pay each month. No more summer electric bills that make you question your life choices or water bills that surprise your budget. You can plan your finances with confidence, knowing your housing costs will remain consistent.
Zero setup worries
Anyone who’s moved apartments knows the drill: calling utility companies, scheduling installations, dealing with deposits, and hoping everything gets connected before you need it. With all-bills-paid apartments, you show up with your stuff, switch the light on, and enjoy living.
No more roommate drama
Splitting utilities with roommates can get messy. Maybe someone uses more AC, works from home every day, or forgets to pay their share. When bills are included in the rent, everyone pays their portion upfront, and there’s no awkward money-related conversations later.
Simplified moving
When you’re ready to move out, you don’t need to call utility companies to cancel services or worry about final bills following you to your new place.
Disadvantages of apartments with utilities included
Higher base rent
All-bills-paid apartments typically cost more upfront than similar places where you handle utilities separately. Landlords build estimated utility costs into the rent and may add a buffer to protect themselves from months of higher usage.
Less control over usage
If you like to crank the AC to arctic levels in summer, you may find yourself dealing with preset thermostats or shared systems that limit your control over temperature in an all-bills-paid apartment.
Extra maintenance efforts
If you run into issues with your included utilities, like your internet not working or your water shutting down, you have to contact your landlord or property manager first. They’ll have to contact the utility companies to try and fix the problem. That extra step may lead to longer downtimes.
Potential for overcrowding
Some properties with utilities included attract renters who prioritize convenience over space, sometimes leading to overcrowded buildings or common areas.
Doing the math: Is it worth it?
To figure out if apartments with utilities included make financial sense, you’ll need to do some homework. Research average utility costs in your area for similarly sized apartments.
You can also look at the most recent utility data in the U.S., which shows the following average monthly cost for utilities:
- Electricity: $135
- Gas: $94
- Water: $49
- Internet: $38
- Cable: $38
Total average monthly cost: $444
Whether all-bills-paid apartments are worth it ultimately depends on your individual circumstances and priorities. You may consider factors like how long you plan to stay, your comfort level with utility management, and whether the specific services included align with your actual needs before making a decision.
Managing your own utilities
Many renters may find greater value in setting up their own utility accounts. While this approach requires some initial effort, you can choose providers based on rates, customer service, and personal preferences like green energy options, rather than being locked into what your landlord or property manager has chosen.
The setup process has become much simpler with many residential service platforms allowing you to activate multiple utilities in one place. You can research electricity, gas, internet, and other services through a single platform and complete the entire process online.
By managing your own utilities, you can also build credit history with service providers and potentially qualify for loyalty discounts. When it’s time to move, you can often transfer services to your new location or take advantage of existing customer promotions.
Whether you choose an all-bills-paid apartment or stick with a traditional rental, it’s important to find a place that fits your budget, lifestyle, and long-term goals. After all, the best apartment is the one that aligns with your specific needs and helps you feel comfortable in your living situation.
