Savanna Hoffman
Students living together in an apartment often need to figure out how to split the cost of utility bills. While bills and utilities are typically included in the rent for purpose-built student accommodation, this is not always the case for rentals, where students may have to set up utility bills in their names for the first time. Students can choose to include bills in their rent, which is more convenient but tends to increase the rent, or they can choose to rent a house without bills included and manage the bills themselves. To split the bills, students can assign a utility or bill to each housemate, and then divide the costs equally when the bills are due, using a money-splitting app to keep track of payments.
| Characteristics | Values |
|---|---|
| Average monthly utility bill cost for students | £88 |
| Biggest expenses | Gas and electricity |
| TV license cost per year | £169.50-£175 |
| Water bill payment | Full-time students are expected to pay the water bills in full |
| Water bill payment frequency | Once every quarter on a standard tariff or once every six months if metered |
| Water bill exemption | Students living in a household solely occupied by students in Scotland are exempt from paying water bills |
| Benefits of having bills included in rent | Convenience, no need to research utility providers, set up bills, or make multiple payments |
| Drawback of having bills included in rent | Cost of rent tends to be higher |
| Approaches to splitting bills | Each tenant manages certain utilities, then splits the bill by the number of people living in the house each month |
| Apps to help with bill splitting | Splitwise |
| Companies to help with bill splitting | Student bill-splitting companies, The Student Energy Group, The Bunch |
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What You'll Learn
Understanding what utilities are included in your rent
When deciding to live with other students in an apartment, it is important to understand what utilities are included in the rent. This can vary depending on the landlord and the specific lease agreement, but there are some common utilities that are typically included or excluded.
Firstly, it is essential to carefully read the lease agreement and ask the landlord or property manager any questions you may have. Basic utilities like electricity, water, and trash removal are often included in the rent. This means that the cost of these essential services is covered by the landlord and is included in the monthly rent payment. Other utilities that may be included are gas, sewage, and garbage disposal. These are considered basic utilities and are commonly included in lease agreements for apartments.
On the other hand, certain utilities like internet, cable, and phone services are usually not included in the rent. Tenants are typically responsible for setting up and paying for these services separately. It is worth noting that some apartments may offer wifi services as an additional inclusion, so it is important to clarify this with the property manager. Additionally, even if utilities are included, there may be other fees outlined in the lease agreement, such as pet rent or parking charges.
Including utility costs in the rent can have several advantages. It simplifies budgeting by consolidating multiple bills into a single rent payment, eliminating the need to manage multiple monthly payments. It also protects tenants from seasonal spikes in utility costs and removes the hassle of contacting service providers or scheduling installations. For students living together, it prevents potential conflicts arising from dividing utility costs among roommates.
However, there are also potential disadvantages to consider. Including utilities in the rent may result in a higher monthly rent payment. Additionally, tenants might have less incentive to conserve resources since they don't directly pay the utility bills. Furthermore, when utilities are included, it can be challenging to determine exactly what you are paying for in terms of usage. It is important to weigh these pros and cons and compare total costs when deciding on a rental property.
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Splitting utility costs with housemates
Understand the Utilities
First, it's essential to understand the different types of utilities that students are typically responsible for. These usually include electricity, gas, and water. Electricity powers lights, appliances, heating, and cooling systems. Gas is often used for heating, hot water, and cooking. Water costs cover the supply of water and wastewater treatment.
Choose a Split Method
There are several methods to split utility costs, and the best one depends on your specific situation.
- Equal Split: The simplest method is to divide the total utility bill by the number of housemates, resulting in each person paying an equal share. This works well when housemates have similar usage habits and living spaces of comparable sizes.
- Square Footage: If housemates have different-sized rooms, you can divide utility costs based on the square footage of each person's living space. This accounts for the fact that larger spaces typically require more heating, cooling, and lighting.
- Number of Occupants: If the number of occupants varies in each room, you can divide costs based on occupancy. This assumes that more people will use more water, electricity, and other resources.
- Actual Usage: The most accurate and fair method is to use sub-meters to track each housemate's utility consumption and bill them accordingly. However, this requires installing sub-meters, which can be costly and time-consuming.
Set Up Accounts
Decide who will set up the utility accounts. Ideally, it should be someone interested in managing the account and mindful of energy usage. You can also share responsibilities, with different housemates managing accounts for different utilities.
Put It in Writing
Once you've decided on a payment method and amounts, document your agreement. This can be as simple as an email or a signed contract. Having a written agreement keeps everyone accountable and provides a reference for future discussions.
Use Helpful Tools
Take advantage of cash-transferring apps like Venmo or Cash App to make payments between housemates quick and easy. You can also explore budgeting apps to help with financial planning.
Remember, it's important to have open communication with your housemates and be willing to adapt as needed to maintain a positive living environment.
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Setting up utilities in your name
When it comes to setting up utilities in your name, there are a few key steps to follow. Firstly, it's important to identify which utilities you need to set up. These typically include gas, electricity, water, and internet services. You should also consider other services such as TV packages, although these may be less essential.
Once you know which utilities you need, you should contact the relevant utility providers. This can usually be done by calling or visiting their website. In some cases, your lease agreement may specify the utility providers for your area. It's a good idea to set up your utilities at least two weeks before you move in to avoid any lapse in service.
When setting up your utilities, you will need to provide the company with personal information, such as proof of your identity and billing address. Acceptable forms of identification may include a driver's license, birth certificate, or government-issued ID. Additionally, you may be required to provide documents related to your employment status or credit history. If you're transferring utilities from a previous tenant, you may also need to provide information such as their name and lease details.
In some cases, utility companies may require a deposit payment, especially if you don't have a payment history with them. This deposit amount typically depends on your credit score and previous track record with utility providers. It's important to review the billing requirements and payment options for each utility provider to ensure a smooth setup process.
To ensure fairness and timely payments among housemates, it's recommended to use money-splitting apps. These apps can help you keep track of individual expenses and send payment requests with due dates. Additionally, setting up a Shared Living Agreement can help you and your housemates decide how to split bills and avoid potential disputes.
By following these steps, you can effectively set up utilities in your name and manage the associated costs. Remember to be mindful of your usage, especially with utilities like water, where you may be charged based on the volume of consumption.
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Comparing utility providers and packages
When it comes to comparing utility providers and packages, there are a few key things to keep in mind. Firstly, it's important to understand the difference between a utility provider and an energy supplier. Your utility provider owns the infrastructure that brings energy, such as electricity or gas, to your home. In some cases, your utility provider can also be your energy supplier, especially if you live in a traditional energy market or if you didn't switch providers after deregulation.
When comparing utility providers, consider factors such as reliability and customer service. You can also look at online reviews to get an idea of other customers' experiences. Additionally, find out if they offer any special packages or deals that may be suitable for students, such as dual fuel tariffs that combine gas and electricity, which can often be cheaper.
When it comes to energy suppliers, you have more flexibility in choosing the right one for you. You can compare different energy packages based on factors such as price, energy source (e.g., renewable energy), and additional features or benefits. Websites like Uswitch allow you to filter deals by various factors and compare prices to find the best option for your needs. It's worth noting that the cheapest supplier for you may depend on your usage, current deal, and location.
To ensure you're getting the best deal, it's recommended to review your options regularly and switch providers if necessary. Most suppliers are signed up to the Energy Switch Guarantee, which ensures a quick and hassle-free switching process. Additionally, consider using money-splitting apps, such as Splitwise, to easily manage bill payments with your housemates.
Lastly, remember that your landlord may be able to provide valuable information about utility and energy suppliers, especially if you're moving into a new property. They can inform you of the previous tenants' suppliers and help you understand the billing process.
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Paying your utility bills
When it comes to paying utility bills as a student, there are a few things to keep in mind. Firstly, it's important to understand what utilities you will be responsible for. In most cases, gas and electricity will be your biggest expenses, but you may also need to set up bills for water, internet, and television. If you live in a purpose-built student accommodation or homestay, bills and utilities are often included in the rent. However, in most rental properties, they are not included, so it's important to read your contract carefully.
Once you know which utilities you are responsible for, you can start comparing providers and deals. This can save you a significant amount of money, especially when it comes to energy bills. Look into different energy providers and see if you can get a better deal by switching. It is usually cheaper and easier to combine gas and electricity together in a dual fuel tariff with the same energy provider. However, always double-check to make sure it's the best offer. You should also consider ways to reduce your energy consumption, such as using energy-efficient appliances and adjusting your heating and air conditioning settings.
When it comes to splitting bills with housemates, there are a few options. One approach is to share responsibility for overall household bills, with each tenant managing certain utilities. For example, one person may take care of gas and electricity, while another handles the broadband. Once the bills arrive, you can split the costs equally among the household and keep a record of who has paid what. You can use a money-splitting app like Splitwise to manage these payments and keep track of who owes what. Alternatively, you can use a student bill-splitting company, but these tend to be more expensive and may limit your options.
Additionally, there are government programs that can help with utility bills, such as the LIHEAP and WAP programs, which assist with heating, cooling, and home weatherization costs. The Lifeline program helps people with low incomes get discounted telephone or internet services.
Remember to give regular meter readings to your utility suppliers to ensure accurate billing. If you don't provide readings, your usage will be estimated, which can result in higher or lower bills. By staying on top of your readings, you can avoid unexpected costs at the end of your tenancy.
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Frequently asked questions
Students can share responsibility for overall household bills by assigning each tenant to specific utilities or services. For example, one person may take on gas and electricity, while another takes on broadband. The bills are then split equally among the tenants each month.
Students can reduce utility costs by limiting their usage of gas and electricity. Additionally, students can shop around for the best deals on utilities and broadband packages.
Students are exempt from paying council tax if everyone in the property is a full-time student. Additionally, students living in Scotland who live in a household occupied only by students are exempt from paying water bills.
Students can use money-splitting apps, such as Splitwise, to manage and request payments from housemates. It is also important to take meter readings regularly to avoid estimated bills, which may be higher or lower than your actual usage.
