Moving into your first apartment can be an exciting yet confusing time. You may have many questions about what expenses are covered in your monthly rent payment versus what bills you’ll be responsible for paying separately. One common area of confusion for new renters is electricity and light bills. Do you have to pay these on your own or are they included in rent?
The short answer is – it depends on your specific apartment. Some landlords include utilities like electricity in the rent, while others make tenants pay for them separately. Here is a more in-depth look at how rental light and electricity bills usually work.
Responsibility for Electricity Bills in Rental Units
When you rent an apartment there are three main scenarios for who pays for electricity
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Option 1 Electricity included in rent – Some apartments bundle electricity costs into the monthly rental rate. This means you don’t have to worry about paying a separate electric bill. Any lighting appliances, HVAC, etc. are covered. This is less common but can be found in some income-restricted or public housing units.
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Choice 2: Separate billing for electricity. In most standard rental units, the utility company bills for electricity separately. Like homeowners, you’ll get a bill every month for how much electricity you use and have to pay it directly. The landlord is not involved.
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Option 3 Rent + electricity fee – In some cases electricity is technically separate but the landlord marks up the cost and bills tenants an “electricity fee” along with rent. For example, rent may be $1000 plus a $150 electricity charge per month.
Typical Cost of Electricity in an Apartment
If you will be paying an electric bill separately, an important question is – how much should you budget for it? Electricity costs can vary wildly depending on location, apartment size, your usage habits and other factors. Here are some estimates:
- Studio apartment – $30 to $70 per month
- 1 bedroom apartment – $50 to $100 per month
- 2 bedroom apartment – $75 to $150 per month
- 3 bedroom apartment – $100 to $200 per month
Of course, these are just ballpark ranges. Actual costs depend on things like:
- Your local electric rates
- Size of the apartment
- Energy efficiency of appliances
- How many people live there
- Your usage of lights, AC, electronics, etc.
On the lower end, a single tenant in a small and efficient unit may only spend $30-50 per month. At the higher end, larger families keeping the AC blasting all summer could reach $200+.
The best way to get an accurate estimate is to ask the landlord for the previous tenant’s average monthly electric costs. This will give you an idea of real bills in that unit.
You can also use sites like electricitylocal.com to compare rates and calculate estimated costs based on local utility prices and your projected usage.
Tips to Save on Electric Bills
If you want to reduce your lighting and electric expenses in an apartment, here are some handy tips:
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Use LED light bulbs – They consume far less energy than traditional bulbs. Replace any incandescent bulbs.
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Maximize natural light – Open blinds and curtains during the day to rely less on artificial lighting.
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Enable smart power strips – These shut off standby power draw when devices are not in use.
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Unplug chargers when not needed – Chargers still use energy even when not actively charging.
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Use fans to supplement AC – Run ceiling fans on high to create a cooling breeze before dropping the thermostat.
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Change AC filters monthly – Dirty filters make the system work harder and use more electricity.
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Set the thermostat higher – Try keeping it around 78°F while you’re home to reduce AC runtime.
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Close windows and doors – Minimize the cooled air escaping outside.
Following some of these tips can save the average renter $10 to $25 per month on their electric bill. Over the course of a 12-month lease, that adds up to over $100 in savings!
Who Pays for Light Bulbs in Rental Units?
Light bulbs sometimes create confusion about who is responsible – tenant or landlord? The typical policy in apartments is:
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Tenants provide: Standard light bulbs for fixtures in the unit. This includes overhead lights, lamps, vanity bulbs, appliance lights, etc. These are considered basic supplies you should own, just like you own your own towels or dishes.
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Landlords provide: Permanent fixture bulbs that only they can replace like fluorescent tubes or high ceilings. Plus bulbs in common areas like hallways.
Of course, always verify the specifics in your lease contract. A few landlords provide all bulbs or have special rules about placement. But in general, expect that you’ll need to purchase replacement bulbs other than those in hard-to-reach spots.
Steps for Establishing Electric Service in Your Name
If your apartment requires paying electricity separately, you’ll need to set up an account with the electric company. Here are the basic steps:
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Choose a start date – Pick a date shortly before your move-in when you want service to begin.
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Contact the utility company – Call the provider for your area to set up a new account.
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Provide personal info – They will collect your name, contact details, Social Security number, etc.
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Give them the address – Provide them with the exact address of the rental unit.
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Submit deposit – You may have to pay a deposit, especially if you have no credit history.
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Schedule install – Some companies may need to send a tech to physically turn on power at the meter.
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Provide landlord info – The company may request contact details for the landlord to verify your tenancy.
Once everything is set up, the electricity should stay in your name as long as you live there. The only other step is to make sure to cancel service when you move out. Failing to do so could make you liable for usage by future tenants.
And that covers the key things new renters should know about paying electricity bills! The majority of apartments require you to pay light and electric expenses separately. But always confirm when touring units, as they can be included in some situations. Follow the tips above to keep your energy costs under control. With the right preparation, you can make sure utility bills don’t break the bank and create issues with your monthly budget.
How much does electricity cost for a 1-bedroom and 2-bedroom apartment?
The average electricity bill for a one-bedroom in the U.S. ranges from $60-$66 depending on whether one person or two people live in the apartment.Two-bedroom apartments are slightly more expensive, coming in at around $76 dollars.
Size | Avg. Electric Bill | Avg. Total Utility Cost |
1-Bedroom | $60-$66 | $125 |
2-Bedroom | $76 | $194 |
What electrical appliances are costing you the most?
Let’s break down that usage.
Typically, heating and cooling will account for the largest portion of your monthly electricity usage. Heating and cooling can account for up to 50% of your monthly electricity usage.
The other 50% is used by other major electricity consumers such as water heaters, lighting, washers and dryers, and kitchen appliances. For more information, check out our breakdown of what appliances are driving up your electric bill each month.
As you are budgeting for your apartment, take a moment to think about your own energy habits.
How often do you do laundry? How often do you watch TV? Do you use your AC and heaters often? Once you know your own electricity habits, you can begin to estimate and calculate what your own electricity costs will be.