After months of searching, have you finally signed the lease on your new apartment? 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 doesn’t pay for itself.
Make sure you consider all your average monthly utility costs such as a natural gas bill and an energy bill, and don’t forget that deposits have to be paid upfront before even receiving service.
Read on to learn about how much an electricity deposit is for an apartment.
How Much Does an Electricity Deposit Cost for an Apartment?
When preparing a budget for your apartment utilities, it is important for you to consider all hidden fees that might not have been initially considered.
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 avoid them altogether.
Cost of Electricity Deposit
More often than not, the cost of your electricity deposit will range from the amount of one month’s service to double the apartment’s monthly electric bill. This cost will vary across providers and customers and can be determined based on your credit score and payment history.
You can typically pay this deposit upfront in its entirety or in monthly installments, which will be added to each month’s utility bill until the deposit balance is paid in full. However, if you are ever late to pay an installment, you will likely have to pay the entire deposit in full immediately.
Utility deposits may be paid by phone, at local energy provider offices, and authorized payment locations.
Why Utility Companies Request Electricity Deposits
Utility companies typically require energy deposits to protect themselves from customers potentially defaulting on their monthly utility bills.
In most fixed-rate energy plans, customers use electric service for a set period of time before having to pay their electric bill. Customers who have a poor history of paying their bills on time or do not have good credit are high-risk candidates for defaulting on these payments or ending service without paying.
Utility deposits are meant to cover the amount an electric provider may need if a customer does not pay for service. These deposits are often required of first-time apartment renters since they have no recorded payment history.
Waiving an Electricity Deposit
Generally speaking, you cannot have your required electricity 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 provider may choose to waive your deposit.
Additionally, suppose you have a qualified cosigner with a positive history of paying utility bills on time and good credit. In that case, you may qualify for a waived deposit.
Getting Your Electricity Deposit Refunded
To get your utility deposit back, you must be able to make on-time payments for 12 consecutive months.
Note that your deposit will accrue interest throughout your first year of electric service at a rate established by the Public Utility Commission. If you can’t make on-time payments throughout the year or do not pay your bill in full, then your deposit will be applied toward paying this balance.
If you move to a new apartment and switch electric providers, your deposit plus interest will be applied to your final bill and you will receive a refund check in the mail for the difference within 45 days.
However, if you continue service with your previous utility company at your new home, your deposit will seamlessly transfer to this new location or account.
Avoid Electricity Deposits with Prepaid Energy Plans
Is paying a utility deposit upfront creating a huge barrier to entry to getting the energy you need for your apartment? Check out Payless Power’s prepaid energy plans that allow customers to avoid 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.
Tips for Saving Money on Your Apartment’s Electric Bill
Moving into a new apartment brings with it the excitement of setting up your space and the challenge of managing your expenses. Among these, the electric bill is a significant monthly cost that can vary greatly depending on your energy usage, the cost of utilities in your area, and the energy efficiency of your appliances. To help you save money on energy costs and manage your first bill with ease, here are some practical tips that incorporate energy-efficient habits and technologies:
- Invest in Energy Star appliances. When you move in, or if you’re in a position to upgrade your appliances, opt for those with the Energy Star label. These are designed to be more energy-efficient, reducing your average utility costs over time.
- Talk to your property manager. Before you move in, discuss your apartment’s average utilities cost with your property manager. This can give you a clearer idea of what to expect and how to budget. They might also provide insights into the building’s energy efficiency and any available programs for energy savings.
- Monitor your energy usage. Keep an eye on your energy usage, especially during the first few months. This will help you understand your consumption patterns and identify areas where you can cut back.
- Utilize energy-efficient lighting. Replace any incandescent bulbs with LED bulbs. LEDs are more energy-efficient and have a longer lifespan, which can help reduce energy usage and the cost of frequently replacing bulbs.
- Be smart about air conditioning. To save on your electric bill, use your air conditioning wisely. Shut off AC units when you’re not home, and consider using fans to circulate air, which consumes far less electricity.
- Unplug electronics when not in use. Many electronics and chargers draw power even when they’re turned off but still plugged in. Unplug these devices to avoid paying for this “vampire power.”
- Consider solar panels. If your apartment or property management allows it, investing in solar panels can significantly reduce your energy bill. Some areas offer incentives or rebates for solar installation, further offsetting the initial costs.
- Seal leaks and insulate. Talk to your property manager about ensuring your apartment is well-insulated and free from leaks around doors and windows. This can help maintain your desired temperature, reducing the need for heating or cooling.
By implementing these strategies, you can enjoy a comfortable apartment while keeping your energy bills in check. Remember, the key to saving money on your electric bill lies in being mindful of your energy consumption and making small changes that can lead to big savings over time.
Setting Up Utilities in Your New Apartment: A Guide for Homeowners and Renters
As you prepare for the excitement of moving into your new apartment, one of the essential steps is setting up utilities to ensure your new home is comfortable from the moment you step in. Whether you’re a homeowner moving into your first property or a renter transitioning to a new address, understanding the utility activation and management process is crucial.
Here are some tips to streamline this process:
- Begin the process early. Start setting up your utilities as soon as you have your move-in date. This includes electricity, water, gas, internet, and cable TV. Early activation ensures you have all the essentials running by the time you move in.
- Use apps for convenience. Many utility companies and real estate platforms now offer apps that make managing your accounts, paying bills, and monitoring your usage easy. These apps often allow you to store payment information, like your credit card details, for quick and easy monthly payments.
- Update your address. Make sure to update your new address with all utility providers. This is important for billing purposes and ensuring that any service visits or maintenance checks are dispatched to the correct location.
- Transfer utilities instead of canceling. If you’re moving within the same service area, ask about transferring your utilities to your new address instead of canceling and reactivating them. This can sometimes save on activation fees and prevent unnecessary service interruptions.
- Adjust your thermostat for savings. An adjustable thermostat can be a game-changer for controlling your heating and cooling expenses. Programmable thermostats allow you to set temperatures based on your schedule, ensuring you’re not wasting energy when you’re not home.
- Check the water heater settings. Adjusting the temperature of your water heater can lead to significant savings. Water heaters are often set higher than necessary. Lowering the temperature can reduce energy usage without impacting your comfort.
- Understand the moving out process. If you’re moving out of an apartment, ensure you understand the process for transferring or canceling utilities. Notify your providers about your moving date to avoid paying for services after you’ve left.
- Ask about homeowner specials. If you’re a new homeowner, some utility companies offer specials or discounts as a welcome gesture. Don’t hesitate to ask about any deals that could save you money during the moving process.
By following these steps, you can ensure a smooth transition to your new home, with all the comforts and conveniences ready from day one. Setting up utilities might seem daunting, but with a little planning and modern technology, it can be a straightforward part of your move.
Don’t Forget To Budget for the Cost of Other Apartment Utilities!
Not only do you have to think about the utility costs that come with renting a new apartment, such as your electric utility bill and natural gas bill, but you also need to budget for all of the other bills that make daily life possible and enjoyable – like your water bill, streaming services, trash collection, internet service (wi-fi), HVAC, cable TV, and more.
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!
Ready to take control of your electricity bill? Enroll with Payless Power today and enjoy affordable rates and no-deposit electricity for your apartment.
