Who Pays Utilities in Annual Rent: Typical Setups and нюances

Introduction

Renting a home for a year gives stability, but utility payments often cause confusion. This guide explains common utility-payment schemes for annual rentals in Georgia, key clauses to include in a lease, and practical steps to protect both landlord and tenant. 🏡🔍

Common utility payment schemes

1) Tenant pays all utilities

A straightforward setup where the tenant pays electricity, water, gas, internet and any building-service fees. Pros: landlord has minimal administration; tenant controls consumption. Cons: tenant bears the risk of high bills unless limits are set.

2) Landlord covers utilities

Sometimes the landlord pays utilities as part of the rental price. This can be marketed as “utilities included.” It’s convenient for tenants but may reduce incentives to save energy.

3) Split or mixed model

A common fair arrangement: utilities measured by individual meters (electricity, water, gas) are paid by the tenant; communal building fees or maintenance charges are paid by the landlord or split. This model is flexible when clearly documented.

4) Fixed utility fee

The parties agree on a fixed monthly amount for utilities, regardless of actual consumption. Important: specify what’s included and how to adjust the fee if costs rise significantly.

Specifics in Georgia to watch for

• Many modern buildings have a monthly condo/maintenance fee for shared services (security, cleaning, elevator maintenance). Clarify what that fee covers.
• Check whether the apartment has individual meters; older buildings might have common meters or shared setups.
• Find out if bills come directly from service providers or via the building management — this affects transparency and accountability.
• Decide who handles repairs to appliances and in‑flat equipment (e.g., water heater) and how emergency work is paid.

What to include in the lease ✅

• Exact list of utilities and who pays each item.
• Payment schedule and due dates (monthly, in advance, upon receipt).
• Acceptable proof of payment: receipts, screenshots, or official invoices.
• Responsibility for previous debts and handling at move-out.
• Mechanism for adjusting fixed utility fees if market prices change.
• Procedure for recording meter readings on move-in and move-out.

Risk reduction and practical steps

• Photograph or video meter readings at move-in and include them in an inventory/hand-over document.
• Request copies of recent utility bills to estimate typical costs before signing.
• Agree on a security deposit or utility deposit to cover unpaid bills and state how any surplus is returned.
• If utilities are included, set a fair cap or mechanism to handle extreme overuse.

Example clauses and sample wording

• “Tenant pays electricity and water according to individual meter readings; landlord covers building maintenance fees.”
• “Utilities included in rent are limited to a specified amount; any excess will be billed to the tenant.”
• “Meter readings will be recorded and signed by both parties at the start and end of the tenancy.”

Common mistakes to avoid

• Signing a lease without clearly stating who pays what.
• Not obtaining receipts or failing to record meter readings.
• Assuming building fees are included without written confirmation.

Tips when searching for rental property in Georgia 🔎

• Compare listings based on what utilities are included and what’s billed separately.
• Ask for past utility bills and the building’s service-charge breakdown when possible.
• Prefer properties with individual meters and transparent billing if predictable costs are important.
• Browse listings and filter by your needs on our site: https://buyhome.ge/en/search or check apartments at https://buyhome.ge/en/apartments

Conclusion and call to action

Utility payments are a common source of disputes in annual rentals, but most issues are avoidable with clear lease terms, meter documentation, and transparent billing. If you’re renting or letting property in Georgia and want help drafting fair terms or finding the right place, contact BuyHome. Our team will help you choose properties and set clear, fair utility arrangements. 📞