Who Pays for Utilities and Bills in a Rental Property?

In an rental, the division of who pays which bills is generally straightforward, but it helps to know the details to avoid surprises. Utility bills like electricity, gas, and water usage are usually paid by the tenant, while the landlord covers council rates and certain other charges.

Who pays utilities?

Here’s the typical breakdown:

Electricity & Gas

As a tenant, you’ll set up the electricity and gas accounts in your name when you move in and pay for your ongoing usage and service charges. You’ll be responsible for connection fees as well when initiating service.

Water

This one varies by state and whether the property is separately metered. Generally, landlords pay fixed water supply charges and sewerage rates (since those are like council rates), but tenants pay for water usage if the property has its own meter​.

For example, in a house with a water meter, you’d pay the quarterly water usage amount, while the owner pays the service fee. If there’s no separate meter (common in apartments where all units share one meter), the landlord usually must cover water since they can’t measure your exact use.

Internet & Phone

Tenants arrange and pay for their own internet/phone plans. You can pick any service provider available in your area – it’s entirely up to you​.

One note: if a new physical connection is needed (say the apartment never had a phone line and you install one), discuss with the landlord, but day-to-day internet bills are on you.

Council Rates & Land Tax

Paid by the landlord. These are ownership costs (property taxes, etc.), so renters don’t pay these.

Body Corporate Fees

If you’re in a strata or unit complex, the owner pays any body corporate levies. However, as a tenant you must follow the building rules (like garbage, parking, etc.), even though you’re not paying the fees.

Contents Insurance

An optional but recommended “bill.” The landlord insures the building, but that doesn’t cover your personal belongings. If you want insurance for theft or damage to your stuff, you’ll need to pay for a renter’s contents insurance policy.

Final Notes

Always check your lease agreement – it should spell out who pays what. In some cases, a landlord might include a utility in the rent (e.g., maybe they keep an internet account for the property and bundle it in). But this is uncommon; most often, you’ll be handling and paying for your own utilities directly.

One more tip: when moving in, take photos of the meter readings (electricity, gas, water) and inform the providers from that start reading, so you’re not charged for usage by previous occupants. Likewise, when moving out, note the final readings and inform utilities to close or transfer accounts.

In summary, budget for your ongoing utility bills as part of your rental expenses. The landlord isn’t going to pay your electric bill, but they also can’t charge you for things like council rates. If in doubt, refer to your tenancy agreement or ask the property manager for clarification on any bill.

And remember, if there is more you need, check out our other insights.