When To Include Utilities in Your Monthly Rent

Dustin Edwards • May 17, 2025

Many landlords have considered including utilities in their rent prices when trying to stand out in the rental market. Utilities can make up a significant portion of your tenant’s monthly expenses. By including the utilities, you can attract prospective tenants who would rather pay one lump sum for their expenses rather than manage multiple bills every month.


Today, we’ll explore when it makes sense to include utilities in your monthly rent and offer guidance to help you make an informed decision.


Pros and Cons for Tenants and Landlords

There is no denying that including utilities can make a rental property stand out and be more attractive to prospective tenants. Especially in a competitive rental market. It makes it simpler to process the rent while also reducing administrative burdens. Though landlords run the risk of having to absorb excessive utility costs if a tenant uses more than expected. This can affect your bottom line and tenant satisfaction if additional disagreements over utility usage with your tenant.


Utilities typically refer to essential services such as water, electricity, gas, or trash collection. Occasionally, this can also include internet services or cable. Including utilities in the rent offers the convenience of a single monthly payment for your tenant. This helps them budget easier, and removes the hassle of managing multiple utility bills for them. This system is especially appealing for short-term tenants or prospective tenants who would rather simplify their monthly expenses. 


Although this can result in a higher rent payment, meaning some tenants may argue that they are being overcharged or charged an unfair amount. Due to the fluctuating costs of utilities, it can also be difficult to accurately predict your monthly earnings. It's also possible for some tenants to take advantage of this and overuse the utilities as their less incentive to be conservative with the utilities.


When to Include Utilities

Including utilities in rent works the best under specific circumstances. For example, short-term leases, furnished apartments, or investment properties in high-demand areas are oftentimes more successful with utilities included in their rent. These arrangements can provide convenience and a straightforward pricing structure for tenants who would rather not manage separate utility accounts. 


As a landlord, offering your tenants a simplified, all-inclusive rent can make the property far more appealing to prospective tenants. This can help reduce stress for you and your tenant during a turnover period and reduce overall vacancy periods.


Which Utilities Should You Include

As previously stated, there are many utilities necessary for tenants. As a landlord, you don’t necessarily need to include them all in your monthly rent. In Southern California, it's not uncommon for landlords to include some utilities while having their tenants pay for others. A common example is the water and trash disposal being included in the rent, because generally water is relatively inexpensive, and trash disposal is a set price, meaning it's easier to predict your expenses.


Knowing when to include the utilities in the rent is essential to calculating a fair rent price. Landlords will need to be able to estimate the average utility costs based on the size of the property and the number of tenants moving in, then adjust the rent accordingly. Some landlords set a fixed utility fee that covers the average usage, while others may cap the utilities to prevent tenants from overusing the services.


Alternatively, including additional utilities such as electric and gas is a great economic change that can make your property stand out, though the landlord assumes all responsibilities to the utility companies. This can be difficult for some landlords to manage, especially those with an extensive portfolio. While including utilities in the rent has several advantages, it's important to know how to balance them with the potential disadvantages.


Not every rental property needs to include the utilities in its rent, this will depend greatly on the specific needs of the landlord and tenants. Landlords will need to carefully assess the market to calculate a fair and competitive rent. If you need help determining how much to charge for utilities or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.

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5 Signs It's Time To Replace Your Rental's Roof

By Dustin Edwards • May 8, 2025
Your property’s roof is its first line of defense from the sun, rain, and wind. Which means it will eventually wear out. Many landlords overlook this since a roof is generally designed to last twenty or so years, and they simply forget until the signs begin to show. Below, we’ve compiled a short list of five signs it’s time to replace your roof for when doing property inspections. Tenant Complaints When your roof has become damaged, your tenants will likely be the first to notice. When tenants report water stains on the walls and ceilings, it's a sign that you should inspect your roof. In severe cases, your tenant may notice water dripping from roof leaks. This moisture, if left unchecked, can lead to the growth of mold and mildew, which can be a health concern for your tenants. Some tenants simply move out, assuming the odors or recurring respiratory issues are caused by the rental and not just the roof. This leaves you with a vacancy to manage, and if you’re unable to find the leak during this period, the following tenant may have a negative experience as well. Many landlords have found it beneficial to have property inspections regularly in order to preserve both the property’s value and the tenant’s trust. Roof’s Age Even with the highest quality materials, a roof still has a shelf life. Most roofs in Long Beach, CA, use asphalt shingles, and these generally last around twenty to twenty-five years. Once they've passed this threshold, the faults begin to show themselves. A sagging roof line is a sign that your roof is due to be replaced, as it's a serious concern. It often indicates that moisture has entered the underlying decking and caused some structural damage. From ground level, you may not be able to notice these problems. However, during an inspection of the property, an experienced inspector should be able to notice soft spots or contours on the roof. These forms of damage often get worse over time. Coordinating these inspections and preventative maintenance can be difficult for landlords with an extensive portfolio, which is why many enlist help. Shingle Damage Damaged shingles are one of the most obvious signs that your roof is deteriorating. If you ever notice cracking, curling, or patches with missing shingles, the roof is no longer providing adequate protection to your property. Although you can buy time with spot repairs, if the entire roof shows signs of damage, it’s likely time to replace the roof. Aside from protecting your property, the roof affects your property’s curb appeal. A patchy and worn-out roof can drive down the rental appeal. Prospective tenants will easily be able to spot the differences between pictures taken in the listing when compared to the property in person. This can not only hurt your chances of filling a vacancy, but it can also hurt your reputation as a landlord. Granules in Gutters After heavy rainfall, it's a good idea to inspect your rain gutters. If you or your property manager notice large amounts of black or gray granules, it means your roof shingles are breaking down. These granules are critical for shedding water off the roof. Once the granules fall off the shingle, the shingle begins to degrade faster under the sun and elements. If you’re not sure how old your roof may be, Loss of granules can be a strong indicator that your roof is nearing the end of its lifespan. Regular gutter cleaning and roof inspections can help catch these problems early before they become expensive repairs . Increase in Utility Bills Your tenants complaining about their utility bills increasing or poor temperature control in the rental may not realize the roof is to blame. A failing roof can result in subpar insulation and ventilation. This can lead to higher heating and cooling bills for your tenant. This can be frustrating for your tenants while putting more strain on the HVAC system. This puts more wear and tear on your HVAC system. Being aware of the warning signs and being proactive can protect your rental property, maintain tenant satisfaction , and avoid emergency repairs. If you need help inspecting your roof or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .

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