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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Beach Rentals Need These 3 Maintenance Items Before Summer Starts

By Dustin Edwards • May 30, 2025
Summer is a great time of year where people enjoy a number of outdoor activities. Though for landlords, summer brings with it a list of maintenance items and preventative care for their properties. Below, we’ve gathered three of the most important maintenance items to do before summer starts. Service your HVAC System Southern California summers are getting hotter and hotter, if you want to maintain tenant satisfaction you’ll need to have the HVAC or any A/C or cooling system properly serviced . Filters should be cleaned or replaced, and the ductwork should be inspected. For rentals with window units or mini-split systems should also be thoroughly inspected as well for optimal cooling. Doing proactive maintenance can reduce the risk of the cooling system breaking down during peak usage while also improving the system’s efficiency. This can lower utility costs for your tenants while extending the lifespan of your cooling system, saving you money in the long run. Additionally, consider inspecting your window and door seals for leaks. If the seals are broken, it allows hot air into the living space, this increases the cost associated with cooling while adding more load to the HVAC or cooling system. While not directly a part of the HVAC system, ensuring there aren’t any breaks in the seals helps extend the lifespan of your cooling system which is beneficial to your bottom line. Inspect your Roof The condition of a roof is oftentimes ignored since they tend to last over twenty years, and some property owners may not even be sure when the roof was last replaced . A poorly conditioned roof is one of the primary ways for a rental property to drive up the costs of repairs and tenant complaints. A damaged roof can inefficiently insulate a home, making it harder to keep it cool. It can also lead to water leaks during rainfall, which can lead to water damage, stains, and mold growth. While summers tend to be dry, the coastal cities such as Long Beach may see unexpected shifts in weather, which can bring sudden rainstorms or increased humidity. Fixing a small roof leak is relatively inexpensive, however, leaving said leak to grow can result in an emergency repair can cost thousands especially if a tenant has already moved in. A thorough roof inspection is a great maintenance item to do during a vacancy period especially as this can result in a positive experience with new tenants. This can lead to a long term stay with many lease renewals. Check for Signs of Pests Pest infestations are one of the fastest ways to ruin a tenant’s stay while also damaging a landlord’s reputation. Pests such as ants, cockroaches, other bugs, and rodents are common in many beach cities, especially during the warmer seasons. Being in a city, you’ll likely never truly be rid of pests, though, even a single complaint about an excess of bugs or rodent droppings can lead to bad reviews online, service calls, and in severe cases, lease termination. These pests not only create an unwelcome environment for your tenants, but they can also cause real damage to your investment property. Cockroaches are known to damage small wiring in appliances, ants can ruin food and get in everything, while rodents can chew through walls, plumbing, and even electrical wiring. Landlords should schedule regular ppest inspectionsto check for early signs of pest activity before the hotter season begins. Much like everything in this article, preventative maintenance is significantly cheaper than an emergency call, in this case to an exterminator. If you want to keep your tenants happy and your property well taken care of, preventative maintenance is a must. If you’re unsure about the signs to look for when doing routine inspections 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 .

What Is A Solar Battery and Does Your Rental Need One?

By Dustin Edwards • May 27, 2025
A Solar Battery is an important party of a solar panel system. However, is it valuable for a rental property? Read on to discover.

If You Have These 3 Things, Consider Putting Solar Panels

By Dustin Edwards • May 22, 2025
As California becomes more and more electric, the idea of installing solar panels becomes more enticing for many landlords. While the initial investment may be quite expensive, there are a few things to consider before making the decision. By keeping these factors in mind, you can greatly reduce the overall cost of installation as well as reduce your operational costs throughout the lifespan of the solar panels. Below, we’ve compiled three considerations you should keep in mind before making your decision to install solar panels on your rental property. Long Term Ownership For landlords whose plan is to own their rental property for a long period of time, a solar energy system can be a strategic investment with long-term benefits. The longer you own a solar panel system, the lower the operational costs can be for your rental property. Unlike a homeowner, who sees their return through their energy bill. A landlord sees their return through lower vacancy rates and higher lease renewals. The initial expense associated with installing solar panels can be offset over time through reduced energy costs, improved property efficiency, and adjusting your property’s rent accordingly. Tenants are quite receptive to features that lower recurring expenses, such as their electricity bill. With so many people working from home, a lower energy bill can result in an improvement in tenant satisfaction , as well as reduced vacancy and turnover rates. The use of solar panels fits well in a long-term investment strategy that focuses on keeping operational costs low and reliable while improving your rental property’s value . Stand Out From the Competition In a competitive rental market, such as in Long Beach, CA. Features such as solar panels can help your property stand out to prospective tenants. Features such as solar panels can increase a rental property’s attractiveness to many tenants, though, specifically environmentally conscious individuals and younger tenants tend to gravitate towards rentals with solar panels more. Properties that are energy efficient appeal to renters who prioritize lower utility bills and more sustainable living conditions. These features may influence a prospective tenant’s decision when choosing between rentals of similar characteristics and space. Additionally, tenants who are interested in sustainability often care for the rental and follow the rules better than others. They are also more likely to opt into lease renewals. This means that solar panels can improve your bottom line through a more consistent monthly rental income due to the reduced vacancy and turnover rates. Your Roof is in Good Shape It goes without saying that your roof needs to be in a structurally sound condition in order to install solar panels. In general, a roof is expected to have a lifespan of twenty to twenty-five years, If your roof still has over fifteen years of proper functionality, it's ideal for installing solar panels without requiring additional costs for repair. If your roof is in good condition and won't require repairs in the foreseeable future, you’re far less likely to face problems that would require you to remove the solar panels temporarily. This can be expensive, which is why it's important you don't properly inspect your roof before making the decision to install solar panels. Installing a solar system on your rental property offers measurable benefits to your bottom line in reducing your vacancies and turnover rates, as well as keeping your rental property competitive in the market. If you’re unsure if your roof is structurally sound to install solar panels 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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