Have you finally signed the lease on your new apartment after months of searching? Don’t put your budget calculator away just yet. It’s time to consider all of the basic living necessities that will eat at your wallet every month – after all, air conditioning and utility bills don’t pay for themselves. Make sure you consider all your average monthly expenses owed to your utility company such as a natural gas bill and an energy bill, and don’t forget that security deposits for residential customers may be required up front before even receiving electric service. Read on to learn about how much an electricity deposit is for an apartment.
How Much Is An Electricity Deposit For An Apartment?
When preparing a budget for your apartment utilities, it is important for you to consider all of the utility companies hidden fees that might not have been initially considered. While a payment in the form of a security deposit may be required before you can receive utility service, reading the fine print and having a conversation with multiple utility companies might end in your favor. Read below to learn about the cost of electricity deposits, why providers request them, if you can qualify to have them waived, how to get them refunded, and how to save money and avoid them all together.
Cost of Electricity Deposit for Utility Service
More often than not, the cost of your electricity deposit will range from the amount of one month’s electric service to double the apartment’s monthly electric bill. This cost will vary across utility companies and customers and can be determined based on your if you have good credit and a strong payment history. You can pay a deposit upfront in its entirety or in monthly installments on a predetermined due date which will be added to each month’s utility bill until the deposit balance is paid in full. However, if you ever make a late installment payment of your security deposit, you may be required to immediately pay the entire security deposit in full. You can pay a deposit over the phone, at local utility company offices, and at authorized security deposit payment locations.
Why Utility Companies Request Electricity Deposits
Utility companies may require a utility deposit from their customers to protect themselves from customers potentially defaulting on their monthly utility bill payment. In most fixed rate energy plans, customers use electric service for a set period of time before they have to pay their utility bill. Customers who have a poor previous history of timely electricity bill payment or do not have good credit are high-risk candidates for defaulting on these payments or ending service without paying. Security deposits are meant to cover the amount an electric provider may need if a customer does not pay for utility service. These security deposits may be required for first-time apartment renters since they have no recorded previous payment history.
Waiving an Electricity Deposit for Utility Service
Generally speaking, you cannot have your required electricity security deposits waived, though your local utility company may choose to waive it under certain circumstances. If you are a senior citizen, have proof of medical indigence, or are a victim of domestic violence, then your utility company may choose to waive your security deposit. Additionally, if you have or a well-qualified cosigner has a positive history of paying utility bills on time and has good credit, then you may qualify for a waived security deposit.
Getting Your Electricity Deposit Refunded
In order to get your security deposit back, you must be able to consecutively pay your utility bills promptly on their due date for 12 months. To note, your security deposit will be accruing interest throughout your first year of electric service at a rate established by the Public Utility Commission. If you are unable to make a payment by the due date each month for one year or do not pay your bill in full, then your security deposit will be applied towards paying the balance in your utility account. In the case that you move to a new apartment and switch light companies, your security deposit plus interest will be applied to your final utility bill and you will receive a refund check in the mail for the difference within 45 days. However, if you continue electric service with your previous utility company at your new home, then your security deposit will seamlessly transfer to this new location or account.
Avoid Electricity Deposits with Prepaid Energy Plans
Is paying a utility deposit up front creating a huge barrier to entry to getting the energy required for your apartment? Check out Payless Power’s prepaid energy plans that allow customers to avoid security deposits and credit checks. With a prepaid energy plan, customers strictly play for an initial amount of energy up front and consume it until they have reached the limit of that particular payment. Payless Power instantly approves all customers for no deposit electric plans regardless of their payment history or credit score, lowering the barrier of energy to electric service for all who need it. If you can’t afford a security deposit for your electric service or are looking for ways to save money on your electricity costs, signing up for a prepaid energy plan could be a great option for you.
Budget for an Electricity Security Deposit and Other Apartment Utilities Today!
Not only do you have to think about the utility costs that come with renting a new apartment, such as your security deposits, electric utility bill and natural gas bill, but you need to budget for all of the other bills that make daily life possible and enjoyable. The full list of apartment utilities that will make up your utility costs are water and sewer, energy, natural gas, trash, internet, cable and phone, and security. And remember – many of those may require that you pay a security deposit before you can even receive service. So before you crank that air conditioning all the way up on a hot summer day, remember how much you budgeted for your monthly utility bill!