How Much Should You Budget for Utilities?
Today, we have a question from our MyFirstApartment mail bag.
Lacey”
The short answer is — anywhere from $75 – $200+ per month. What’s the long answer? In terms of possible utilities, here’s a comprehensible checklist: electric, water, heat, trash pickup, gas(**HEAT), cable, internet, and telephone. Off the bat, water and trash-pick up should be included in your rent; if it’s not, you very well may have a landlord who’s not abiding by the letter of the law — so definitely check into that. Now, let’s break down the remaining list.
Gas: Usually ranges from $15-30, depending on how much you cook. The more you use your burners/oven, the higher the cost. Also, know that gas includes costs for HEAT, which can go as high as a few hundred dollars in the winter if you like to stay super toasty! If possible, I’d recommend trying to find an apartment with radiator heating, as these kind of apartments usually include free heat!
Cable/Internet/Phone: Approximately $100. Be sure to call up your cable company and ask if they have any specials — they usually do and you’ll get the best new customer deal by calling up and sweet talking the sales associate at the other end. If you’re looking to go bare bones, ONLY internet usually runs about $30-$50.
The hidden expense in living on your own is being responsible for all the utility costs; if you’re worried about costs, I’d seriously consider finding a roommate to help share the load! In other words, $200/3 people = pretty sweet 3-bedroom.
Also, so you know, the exact amount of utilities is impossible to pinpoint as it really depends on your energy usage. The U.S. Department of Education has a decent budget calculator, and they recommend putting aside 2-10% of your net income for utilities. However, they also ask you to seriously consider cost of long distance phone calls(hello, cellphone!) so. . .it kinda sounds like they’re living in 1973. That said, cellphone bills can be a doozy.
Good luck!
P.S. If any of you fellow readers have any questions you’d like answered specifically, please feel free to send me a note at editor [at] myfirstapartment.com
“Dear My First Apartment,
How much do you pay for utilities in an apartment? There are so many factors to consider. Would you be kind enough as to give me some pointers as what to look for or avoid? A little advice would go a long way right now.
[...] a good rule of thumb is to estimate $75-$200 a month for an entire apartment, according to My First Apartment. Once you find a place you like, you can ask the current tenants about their monthly [...]
Im tring to move into an apartment. My spending limit is very short I can only afford a 1 bedroom but I need a roommate. If I get one I still cant afford the 2 bedroom. What do I do?
[...] Utilities and Renters’ [...]
Hi Shelley,
Based on what you describe, $70-$100 sounds reasonable for the winter. If you’re upstairs and surrounded by other heated apartments, it’s quite likely that your place won’t need much heat, particularly if your place is well-insulated.
Hi,
Does anyone pay for gas heat and dryer(hot water,cooking and washer is electric) in the NE (PA ? it is an upstairs apt. and has new windows.Is not an end unit. Our Apt complex just informed us that we are having a meter installed and will now have to apy for gas which was previously included, when our new lease begins in a month. We’re living on a pretty tight budget, so I was curious how much it might run. Does $70-$100 sound reasonably close in winter months? Our heat hardly never runs, only at night when it is very cold out.It must be a really well insulated apt. though almost 30 years old.
Thanks for any input anyone has, be glad to get it!
Shelley
HEY!!ill beh qettinq my place next month and i waas wonderinq… if any one noes about haff pricinq with a roommate.. see, tha thinq is
im havinq a 5 bedroom apartment, if not more!!!!
how do i split the payment.. holla bac!!!!
thank you!!!!! bye
~ranqer qanq~
Hi Samantha,
This a great question. And it’s true — you save significantly by having a roommate. How to find one? We may have a full article on it next month, it’s such an compelling topic. The short answer is, there’s no easy way. Talking and networking via email, friends, and colleagues is one way. Really working your connections can be surprisingly effective. Or, if you’re a college grad, you may also consider reaching out to the alumni association in the city you’re planning on living in. Often they’ll have message boards and other ways to contact alums in the area who may be looking for a roommate, or who have suggestions. Craigslist is another route — if you search for “shares” on Craigslist, you can move into an already-occupied place as the new roommate. This can be stressful (and you should do your homework on the people/place you’re considering moving into) but it’s very common in big cities, where many renters need roommates. I’ve used craigslist for this, both as a new roommate, and as the guy searching for a new roommate, and have been very successful. Hope this helps!
This is really helpful. I’m moving out of my parent’s house in the next year or so, I know that’s not very soon, but I was just wondering about how people go about finding a roommate? A friend was asking about my plans and he said I will for sure need a roommate, but somebody I can trust and deal with and that sounds hard to find in a new city. I’m thinking about maybe moving to Philadelphia.
Hi Randell,
Thanks for your thoughtful reply. In answer to your question, it appears that the deposit is 1.3 times the average monthly bill for your property, and you’ll need to provide it if you’re new to the area, or have had some outstanding or late utility bills in your past. You can get it waved with a letter of credit from a previous utility company. That said, if you go a year without any late payments, the security deposit will be automatically credited to your account, and so you’ll end up just having a free month of utilities a year down the line. As for when to expect your bill, usually you’ll get a notice that you’ve signed up shortly after you’ve arranged for the service, and then a bill approximately a month after the service begins.
More information is available here: https://www.aepohio.com/service/SecurityDeposits.aspx
Hi,
My question is about the electric deposit that Columbus OH electric charges? How much is this deposit? and is there a way around this? Also when should I expect my first electric bill to arrive after I move in?
I am not sure why you feel the cellphone is exorbitant, unless you use AT&T, as Virgin Mobil has a good 3g (now 4g) which I bought for $150 2 years ago and I am paying $40 month for unlimited everything. Its crazy to get a phone on contract and then pay out the yazoo as AT&T and some other cell companies charge. VM has been great for me and I also tether to my home PC with my cell phone so I have no internet bill. Unless you watch online movies and have to buffer the tethering actually plays the nfl games on my PC at a decent rate.
Also I am seeing that Time Warner has basic Cable/Internet for $20 per mo. No premium channels of course but 20 bucks is sweet.
Thanks for the article, very good subject as Electric rates are such a variable, and never seem right for the amount of electric used by a single person. I went from 3 apartments from $35 to $65 to $120! Single with same everything except different apartment buildings. The first apt. used steam heat and as you stated was very cheap and good.
Hi Keyarra,
Thanks for question. The answer: it depends. Some management companies are more flexible than others. After I graduated college, I moved into a place without any job at all and it wasn’t a problem because I had good credit. That said, not all companies are so forgiving. A good workaround is to have your parents agree to be co-signers … or, if you know you need a roommate, make sure your roommate has a steady income above the required threshold. Often, if you ask management companies directly, they’ll tell you their policy, and let you know what solutions are available to you.
Hey , my parents have been driving me insane. and I’m ready to move out I just was wondering if I don’t make a certain income would a apartment complex not consider letting me lease an apartment?
Hi Terrance,
Thanks for your question. First, you should not have to pay taxes on your rent — in fact, if you live in some states (such as Minnesota), you’ll get a tax rebate for having paid rent, if you make under a certain threshold per year. However, that can be figured out once you’ve scored a place.
As for what you need to get your first apartment, good credit certainly helps, but it’s not totally necessary. If you don’t have any, you may have to have a relative co-sign for you, or you may have to pay more up-front to give the landlord piece of mind. Check out our tips for first time renters as well as our article on renting and credit scores and our article on how to impress a landlord. We have many other articles on related subjects, so please feel free to use our search functionality to find all the information you need.
Im a 19 year old TRYING to get outta my aunts house. Im also planing to collect money so I can rent out an apartment and get out by june.
SO….im trying to figure out what is required for wannabe first time renters like me. Do I have to pay taxes as well along with my rent too? thats a good question and do I have to have credit in order to rent out an appartment? Im pretty serious about getting an appartment.
Hi Katelynn,
You’re welcome; it’s great to hear from our readers, and thanks for the kind comment. We’re happy to help.:-)
Thank you! My parents are gettinig divorced and I’m losing my house :/ so I had to find a place, fast. I don’t really have much help, but this was SUCH a relief. I was scared I wouldnt be able to do it, or I would call the wrong people and get ripped off or something, but this helped! I am now on my way into a very nice apartment, knowing exactly what I’m getting into. THANK YOU!!! :)
[...] one lump sum. However, these rents do tend to be higher than other building, and renters should do the math to ensure that they are not being over-charged for these [...]
imma get my place soon
Hi Chelsea,
Since water and trash are included in both, all you need to price out is the difference between internet/cable vs. heat. You can probably get a basic internet/cable package for $60-75 a month, without HBO or other pay channels. If you live in a cold climate, heat can get pretty pricy. If it is natural gas or electric heat, you need to get an estimate from the gas or electric company. Also, you can call your local cable company for an estimate. But remember, if money gets tight, you can cut off cable, but you cannot do without heat. Take the heat option, pay for the internet yourself, but skip the cable. For $50 you can buy Roku or another device that let’s you stream TV programs free to your TV via the internet. Let us know what you picked. And good luck!
hi i am looking at 2 diferent 2 bedroom apartments one includes water,trash,internet and cable its $600 a month and the other is also $600 a month includes heat,water and trash i was wondering which is better and which would save me more money the one that pays heat,water and trash or the one who pays water,trash,cable and internet???
i’n the next year i will be gettin my own place,
i’m nervous and excited.
This is a great article and I would have been useful two years ago when I first moved. My suggestion for your electic bill is to try level billing. In NY we have Con Edison and they can evenly split your payments up into 12 equal payments and can be adjusted for large spikes and decreases. It takes the guess work out of figuring out how much you're going to have to pay. I got sick of the shock and awe of waiting for and opening my electric bill. Hope this was helpful.