Utilities

Managing Utilities in a Rental Home: A Quick Guide for Home Rebuilders

Rebuilding your home after a disaster often means moving into a rental property temporarily. Managing utilities in this new space can be challenging, especially if they differ from what you're used to.

This guide will help you understand how to set up, manage, and pay for utilities in your rental home. Additionally, we’ll discuss how to handle potential differences in utility costs, using a detailed example comparing propane and natural gas.

Setting Up Utilities

1. Identifying Necessary Utilities

• Essential Utilities: Electricity, water, gas (natural gas or propane), sewer, and trash services.

• Additional Services: Internet, cable, and phone services as needed.

2. Coordinating with Your Landlord

• Included Utilities: Determine which utilities, if any, are included in your rent.

• Previous Accounts: Ask the landlord if the previous tenant’s utility accounts need to be transferred or if new accounts need to be set up.

3. Setting Up Utility Accounts

• Electricity and Water: Contact the local utility providers to set up new accounts. You will likely need identification and proof of residency.

• Gas: Depending on the type of gas used (natural gas or propane), you will need to contact the appropriate supplier.

  • Natural Gas: Typically provided by a utility company.

  • Propane: Delivered by private companies; you may need to set up regular deliveries.

• Trash and Sewer: These services are often managed by the local government or private companies. Your landlord can provide contact information.

• Internet and Cable: Research local providers and choose a plan that fits your needs. Schedule an installation appointment if necessary.

4. Setting Up Payment Methods

• Billing Options: Choose between paper billing and electronic billing. Electronic billing is often more convenient and can be set up through the provider’s website.

• Payment Methods: Set up automatic payments through your bank or use the provider’s payment portal. This helps ensure you don’t miss any payments.

Understanding and Comparing Utility Bills

When moving from your damaged home to a rental property, your utility bills might differ significantly. Here’s how to understand and manage these changes.

1. Factors Influencing Utility Bills

• Size of the Property: Larger homes typically use more energy and water.

• Type of Utilities: The switch from propane to natural gas or vice versa can impact costs.

• Energy Efficiency: Newer or better-insulated homes may have lower utility costs.

2. Example Comparison: Propane vs. Natural Gas

Let’s consider an example where your previous home used propane, which was cheaper, and your rental uses natural gas, which is more expensive.

• Previous Home (Propane):

  • Usage: 100 gallons per month

  • Cost per Gallon: $2.00

  • Monthly Cost: 100 gallons x $2.00 = $200

• Rental Home (Natural Gas):

  • Usage: 80 therms per month (1 therm = 100 cubic feet of natural gas)

  • Cost per Therm: $3.00

  • Monthly Cost: 80 therms x $3.00 = $240

In this example, the switch from propane to natural gas results in higher monthly costs. While propane was $200 per month, natural gas is $240 per month, indicating a $40 increase in your gas utility expenses. Depending on your insurance Policy, you may be eligible for reimbursement of the difference.

Loti can help:

Part of our Expense tracking suite accounts for differences in utility bills between your primary and temporary homes. We then make this easy for your insurance provider to understand as well.

Monitoring and Managing Utility Costs

1. Track Usage

• Regular Monitoring: Keep track of your utility usage to identify any unusual spikes.

• Billing Statements: Review your billing statements regularly to ensure accuracy.

2. Energy Efficiency

• Lighting: Use energy-efficient LED Bulbs.

• Thermostat: Install a programmable thermostat to regulate heating and cooling efficiently.

• Insulation: Ensure doors and windows are properly sealed to prevent energy loss.

3. Water Conservation

• Fixtures: Install water-saving fixtures such as low-flow showerheads and faucets.

• Usage Habits: Practice mindful water use, such as shorter showers and turning off the tap while brushing your teeth.

Tips for Managing Utilities

1. Keep Records

• Maintain records of all utility bills and payments to track expenses and ensure everything is paid on time.

2. Communicate with Providers

• Contact utility providers promptly if you experience issues or notice unusual charges.

3. Budgeting

• Include utility costs in your monthly budget and be prepared for seasonal variations, such as higher heating costs in winter or higher cooling costs in summer.

4. Compare Rates

• Periodically compare rates from different providers if your area allows it. Switching providers can sometimes result in lower costs.

Wrap-Up

Managing utilities in a rental home while rebuilding your primary residence requires careful planning and regular monitoring. By understanding how to set up and pay for utilities, comparing costs between your previous and current setups, and implementing efficient usage practices, you can ensure a smooth transition and avoid unexpected expenses.

This proactive approach will help you stay on top of your finances and maintain a comfortable living environment during this challenging period.