Utility bills and deposits when renting a home

Map every utility

Ask the landlord or utility for the past 12 months of average bills for the unit.

Utility deposits

• Regulated utilities may require deposits from new customers, often based on credit.
• Ask about waivers for good payment history or low-income programs.
• Deposits are usually returned with interest after a period of on-time payments or when you close the account.
• Keep receipts separate from your security deposit records.

Shared meters and billing formulas

In some buildings, one meter serves several units. Ask:

• Is my unit separately metered?
• If not, how are costs allocated?
• Can I see the building bill?

Subsidized housing

In vouchers, public housing, and project-based Section 8, tenant-paid utilities are covered through a utility allowance that reduces your rent. See how rent is calculated.

Move-out

• Schedule final readings and shutoff at move-out (not before).
• Photograph meters.
• Pay final bills and ask for deposit refunds.
• Transfer service to your new address to avoid a new deposit.

Estimating utility costs before you sign

If the landlord can’t provide past bills, try these:

• Ask the utility. Many utilities provide average monthly usage or bills for an address.
• Ask current tenants or neighbors in similar units.
• Check the heating type. Electric resistance heat, older gas furnaces, and poorly insulated units can mean high winter bills.
• Look at windows and insulation. Drafty units cost more to heat and cool.
• Check appliances. Older refrigerators and water heaters use more energy.

In subsidized housing, the housing agency’s utility allowance schedule offers a rough benchmark of typical costs by unit type and fuel.

Your rights when the landlord pays utilities

If utilities are included in rent and the landlord stops paying:

• Many states require the utility to notify tenants before shutting off service to a building.
• Tenants may be able to pay the utility directly and deduct payments from rent.
• Deliberately cutting utilities to force tenants out is an illegal eviction in nearly every state. See illegal lockouts and utility shutoffs.

Submetering and billing formulas

Some buildings charge tenants for water, sewer, or trash through submeters or allocation formulas (RUBS). Before signing:

• Ask to see the formula in writing.
• Ask for the average charge for your unit size.
• Check whether your state regulates submetering or allocation (some require disclosures, caps on admin fees, or allow tenants to review the master bill).

Keeping utility costs down

• Enroll in budget billing to smooth seasonal spikes.
• Apply for LIHEAP and low-income discount rates. See utility bill assistance.
• Ask your landlord about weatherization; renters can qualify with landlord consent. See weatherization.
• Report leaks and drafts promptly—fixing them is usually the landlord’s job.

If you fall behind

Contact the utility before the due date to ask for a payment plan, and learn your state’s shutoff protections. See utility shutoff protections.

Found a changed rule or a broken link? Report a correction for this guide.