For property management in Salt Lake City, few decisions impact your rental business more than utility arrangements. Your lease agreement must clearly state who pays for utilities in your rental property. At Advanced Solutions, we guide landlords through these important decisions to protect both owner and tenant interests. Here’s a complete guide to handling utility payments.

Understanding rental property utilities

Each rental utility needs clear payment responsibility in your lease, including:

Electricity for lights, appliances, and climate control
Gas for heating, water heating, and cooking
Water and sewer services
Trash and recycling collection
Internet and cable television services

What the experts recommend

City officials and conservation groups recommend tenants pay 100% of utilities directly. This approach makes sense – people tend to use fewer resources when they’re responsible for the cost.

Payment options

You have three main payment options. You can include utilities in monthly rent, keep them separate, or split them between landlord and tenant.

At Advanced Solutions Property Management, we recommend keeping utilities separate from rent. Here’s why:

When prospective tenants compare rental prices, they focus on the base rental amount first. Even if your all-inclusive rent (with utilities) offers better value, tenants often skip over higher-priced listings without reading the details.

For example: A tenant sees two similar units – one at $1,200 including utilities, another at $1,000 plus utilities. Most tenants will contact the $1,000 listing first, even though total costs might be comparable.

Managing multiple tenants

For properties with multiple tenants, you can split costs several ways. The most common approaches are equal splits between roommates, dividing by square footage of living space, splitting by number of occupants, or basing it on actual usage through sub-meters.

Legal requirements in Utah

Utah law requires specific handling of utilities. Landlords must disclose all utility arrangements in the lease agreement. If utilities stay in the landlord’s name, you need clear billing procedures. Any sub-metering must follow state regulations. Security deposits cannot cover unpaid utility bills unless your lease specifically allows it.

Best management practices

To handle utilities effectively, advertise your base rental price clearly and list utility responsibilities separately in listings. Your lease should detail all utility requirements. Document meter readings when tenants move in and out, and maintain records of all utility payments and arrangements. You might consider a separate utility fee if needed.

Our leases require tenants to handle all utility payments directly. This creates transparency in pricing and helps avoid confusion about total housing costs.

Advanced Solutions provides Property Management in Salt Lake City, helping landlords navigate utility agreements and other rental challenges. Contact us with your questions.