Who Should Pay Rental Utilities, the Renter or Landlord?

Florida rental properties are all different, and landlords are free to decide whether they will pay for the utilities in an investment home or whether their tenants will be responsible for those costs. Typically, we see tenants setting up their own accounts and paying their own utility bills, but we know that in some cases, it makes more sense for landlords to keep those accounts in their own names. Then, you’ll have to decide if you’re going to bill the tenants back for the utilities based on usage or if you’re just going to have a flat charge for utilities every month that’s included in the rental payment.

Whether landlords or tenants are responsible for utilities depends on the property, the rental amount, and the type of utility service we’re talking about.

Let’s take a closer look at what this means.

Paying for Utilities in Single-Family Homes vs. Multi-family Homes

Tenants are generally responsible for establishing their own utility accounts and paying the bills for electricity, gas, trash, and water when they rent a single-family home in Florida. This keeps things simple, especially since there are no communal spaces and no collective use of water or lights. Residents who rent single-family homes often expect they’ll have to call the electric company and the water company to set up service.

With multi-family properties, things are a little different. Landlords will often cover the cost of utilities for a building and then either bill back the amount that’s due to each tenant based on usage, or just charge a general and consistent flat fee every month for water, electricity, trash, and sewer costs.

If you want to keep the utility bills in your own name, you’ll have to bill the tenants separately for what they use or roll that amount into the monthly rent.

Cable, Internet, and Additional Services

While a rental property is not habitable without water and electricity, additional services like cable, internet, and smart home technology are optional services that most tenants can decide whether they need or don’t need. Landlords in Florida are under no obligation to provide free cable or internet to their tenants.

However, we know that many apartment communities and multi-family rental homes are competing with one another, and one of the perks they offer prospective tenants might be free basic cable or Wi-Fi. It makes their properties more competitive on the market.

While this is not something that’s required, it’s something you might want to consider as a landlord, especially if you want a competitive edge in a crowded market.

Address Utilities in the Lease Agreement