House utilities: A fundamental guide for homeowners and renters

Unless you’re intentionally living off the grid, you’re going to be responsible for house utilities. Basic amenities like plumbing, water, gas and electricity are essential for most people. You may also need internet access for work and/or school, as well as entertainment. When buying a house, you need to be prepared for these monthly charges, on top of home maintenance costs and other homeownership fees.

Here, we’ll cover the different types of home utilities, their cost and ways you can save money on monthly bills. Let’s start with discussing what the utilities in a house are.

What are utilities for a house?

House utilities are essential services that create a comfortable, functioning home environment. Home utilities can include internet, sewage, electricity, water, natural gas and more.

The majority of homes require you to pay for some variety of utilities, no matter if you buy or rent. Setting up your utilities is an important step both homeowners and renters need to take when moving into a new house, condo or apartment. You may have multiple utility companies to choose from, depending on the type of utility and your location.

Types of house utilities: A list of what you might pay for

Each home comes with a different set of utilities. For instance, your home could rely on electricity for heat instead of gas. Utilities can be different depending on where you live, too. This is especially true in rural areas, where you may not have access to broadband internet or have a hookup to municipal sewage.

Here is a short list of utilities you might pay for as a homeowner or renter:

• Internet/cable TV
• Electricity
• Water/sewage
• Natural gas
• Trash and recycling
• Phone services
• Security

Municipalities handle these utilities in different ways, so do some research. The cost for waste removal could be folded into your property taxes, for example.

How much are utilities for a house?

According to EnergyStar.gov, utility bills for a single-family home cost $2,060 per year, on average. However, utility bills vary by home and state, and fluctuate each month. How much utilities are depends on your usage, your neighborhood and the size of your property. This is especially true for gas, electricity and water.

While the national average is a good reference, it’s more accurate to look at average utility costs in your specific area. For example, Americans living in the San Diego metropolitan area paid $0.47 per kWh for electricity in September 2023, according to the Bureau of Labor Statistics. Meanwhile, those living in the Denver metro area paid only $0.15 per kWh.

Who pays for utilities when renting a house?

A lot of rental properties don’t include utilities. What utilities are covered varies by property. For example, the landlord may cover major utilities like heat and water, but not internet. Or Wi-Fi could be included, but you must cover everything else.

Sometimes a landlord will require a monthly check for a set amount to cover utilities, keeping the utilities in their name. This is most likely to occur in scenarios where renters have shorter leases or typically don’t stay in the same property long.

Rental properties with utilities included could cost more because the landlord or rental agency may factor utility costs into your monthly rent. Do some research around average utility costs in the area to determine whether a rental property with utilities included is really a bargain.

How to save money on home utilities with energy-efficient home features

There are plenty of ways to save money on utility bills each month by making your home more energy-efficient. Minimizing your energy usage by investing in newer appliances can lead to small savings that add up over time. Here are some household features you can update that can help you save money and energy:

Energy-efficient appliances

When purchasing new appliances, keep an eye out for the Energy Star label. These products are certified by the Environmental Protection Agency (EPA) to use less energy than others. These certified appliances can noticeably lower your electric bill by about $450 per year.

Energy-efficient windows

If you’re looking to invest in your home and improve its energy-efficiency, look no further than the windows. Old and leaky windows are a huge entry point for cold air in the winter and heat in the summer.

While it’s an investment upfront, having properly installed double-pane windows can save you money over time. Not only will you notice the difference in your utility bills, but energy-efficient windows will cause less strain on your heating/cooling appliances, too. This means you’ll get more life out of your furnace and air conditioner.

Energy-efficient lighting

Turning off lights in rooms when you leave them is a simple step to lower your electric bill. Likewise, making a small investment in energy-efficient bulbs will have a positive impact on your utility costs. These bulbs use less energy, and you don’t have to replace them as frequently. This means fewer trips to the hardware store.

If you’re interested in turning your home into a smart home, look into smart bulbs. These bulbs connect to an app on your phone so you can monitor whether your lights are on or off when you’re not home and turn them off if you need to.

Additional tips for saving money on home utilities

There are plenty of additional ways to cut your energy costs. Here are some more strategies to try out at home:

• Install solar panels.
• Replace the water heater if it’s older.
• Use a programmable thermostat to raise/lower the temperature when you’re not home.
• Replace furnace air filters regularly.
• Unplug electronics when not in use.
• Make small changes to save water.

More FAQs about house utilities

Want to learn more about house utilities? Here are some additional questions you might have if you’re paying a utility bill:

When should I transfer utilities when buying a house?

It’s recommended to transfer utilities about 2 weeks prior to moving into a new house. While you can transfer them sooner or later than that, you should set them up before move-in day no matter what. Make sure the previous owners have called the utility company as well. You may be unable to transfer them until the previous owners have settled their turn-off date.

How do I transfer utilities when buying a house?

When you buy a house, you’re responsible for setting up utilities in your name. With the help of your real estate agent, you can locate your local utility providers and reach out either online or over the phone. They’ll require some personal information like your name and address. You may also need to provide property details like your meter number for gas or power.

What is the most expensive house utility?

According to EnergyStar.gov, heating accounts for 29% of utility bills. When you factor in cooling as well, 42% of your utility bills will go to regulating your home’s temperature throughout the year.

Why do house utility bills fluctuate each month?

House utility bills fluctuate each month due to economic factors such as inflation, demand, the area’s utility rates and fuel prices. Environmental factors affecting utility bills include weather conditions, seasons and the availability of energy sources.

The bottom line: Factor house utilities into your budget for buying or renting

Whether you’re a homeowner or a renter, utility bills are a fact of life. In some way or another, utilities will affect your home buying or renting budget. As a homeowner, you don’t need to spend a fortune on new windows or solar panels to lower your bills, though. Simple practices to conserve water, electricity and natural resources can have a big effect on how much you pay.

Thinking about investing in making your home more sustainable by replacing appliances or windows with more energy-efficient alternatives? Consider funding your updates with a cash-out refinance. Start the process online with Rocket Mortgage^®.