It’s a common sight nowadays for online listings.
“Spacious 2 bedroom apartment – Wi-Fi included”
“Furnished apartment with utilities included!”
“Student apartment with Wi-Fi and utilities inclusive!”
As with most decisions in life, there are pros and cons to including utilities with the rent. We’ll list them below so you can make an informed decision as to whether you want to exclude utilities, partially include, or include all utilities into the price of the rent.
(Credit: Wendy Scofield on Unsplash)
Why should I include utilities?
Streamlined process = happy tenants
- If your tenants only have to worry about paying rent alone, they’ll be far less stressed. It makes their budgeting process easier and they’ll more likely to pay rent on time each week.
If your property isn’t individually metered
- Older apartment complexes often aren’t separately metered for things such as water and gas. In cases such as these, it’s often necessary to include these utilities in the rent.
You won’t have to worry about chasing tenants for payment
- By settling the bill yourself you won’t have to worry about waiting for tenants to pay the bills. It also saves you the ‘I didn’t use that much power/water/gas’ argument!
(Credit: Burak K on Pexels)
Why shouldn’t I include utilities?
No bills, no problem
- By having the tenant sign on for water, gas, electricity, and internet themselves it saves you the hassle of organising and paying them!
You won’t go broke paying someone else’s costs
- If you have an air-conditioning unit in a Brisbane apartment, think carefully before including electricity in the rent. There’ll be nothing to stop your tenants running the air-con all day every day throughout summer, and that is going to HURT come bills time.
You can’t turn a profit
- In Queensland, profiting off on-supply services is strictly illegal. So if you’re looking to make some extra cash, look elsewhere. Utilities are off limits.
(Credit: Tookapic on Pexels)
At the end of the day, think carefully before choosing to include utilities in the cost of the rent. Give your property manager a call and have a discussion as to what is going to be best for you and your property long-term.