The Pros and Cons of Including Utilities in the Rent


When you’re trying to determine what should be included in the rental agreement, one question that will constantly come up is whether you will include utilities in the price of rent. There are pros and cons to including the rent and it comes down to your preference as a landlord. Here are some points for both sides of the argument.

Positives to including utilities

Including the utilities in your rent allows you to charge more for rent since you’re making the lives of your tenants much easier. It’s also more convenient for you as a landlord and you can be confident knowing that your tenants won’t have their electricity turned off, as long as they’re paying their rent. This allows you to be more organized and have your tenants paying for everything at once, in one place.

Negatives to including utilities

One of the biggest negatives to including utilities in the rent is the fact that you will have to deal with the utility company yourselves and this may be time-consuming and cause headaches for you – depending on the number of units you own and manage. Another reason you may not want to include rent is that you may end up paying more if you do. Tenants are more likely to use less water and electricity if they’re the ones paying for it since you paying the utilities removes the incentive for them to conserve energy. You will have to increase the price of your rent, and while this is a positive it may cut into the possible tenant pool. If you don’t include utilities you may find that your tenants are more responsible.

In the end, it’s your choice as a landlord as to whether or not you will include utilities in your rent, it all comes down to what is best for you and your business. You can charge more if you include utilities but it means you have one extra job. With RentMoola your tenants can pay their rent and all their bills online in one convenient place. Find out how you can make paying rent rewarding for your tenants.


Tags : landlordlifestyleproperty managementRentingutilities
Emily Stewart

The author Emily Stewart

Emily is the Marketing and Communications Coordinator at RentMoola. She's a reader, skier, and self-proclaimed Beyonce superfan.

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