Utilities are the essential services that make a home livable: electricity, natural gas, water, sewer, and trash collection, with internet and phone service now commonly treated as part of the package. What is considered utilities depends partly on who’s asking — a lease, an HOA, a lender, or a government program may each draw the line slightly differently — but the five core services above show up on nearly every list. The rest of this guide walks through what each service covers, how you’re billed, who pays in a rental, and the protections you have when something goes wrong.
The Five Core Utilities
These are the services tied to the physical infrastructure of your home. Because the pipes, wires, and meters belong to a single provider in a given area, you usually can’t shop around for a different company. State public utility commissions regulate investor-owned utilities, while municipally owned ones answer to local government.1National Association of Regulatory Utility Commissioners. Regulatory Commissions
- Electricity. Powers lighting, appliances, heating and cooling, and electronics. Metered in kilowatt-hours. The national average residential rate was about 17.2 cents per kilowatt-hour as of late 2025, though regional variation is significant.2U.S. Energy Information Administration. Electric Power Monthly – Average Price of Electricity to Ultimate Customers
- Natural gas. Fuels heating, cooking, and hot water in many homes. Metered in therms or cubic feet.
- Water. Covers drinking, bathing, cooking, and irrigation. Billed by metered usage in most places, by flat monthly rate in some.
- Sewer. Carries wastewater to a treatment facility. Many municipalities calculate the sewer charge as a percentage of your water bill, on the theory that most water entering a home eventually leaves through the drain.
- Trash and recycling. Usually a flat monthly fee based on container size. Some municipalities fold trash collection into property taxes rather than billing separately.
Electricity, gas, and water are consumption-based, so your bill moves with how much you use. Sewer and trash are more predictable because they’re tied to water usage or a flat rate.
Internet, Phone, and Television
Communication services aren’t legally required for a home to be habitable, but most leases, HOAs, and household budgets treat them as utilities in practice. Unlike the core five, they operate in a competitive market: you can usually pick among providers, and the account moves with you. The Federal Communications Commission oversees these providers.
Federal law gives you 24 hours after receiving the contract terms to cancel a new cable, satellite, or bundled service agreement without paying an early termination fee.3Office of the Law Revision Counsel. 47 USC 562 – Requirements Relating to Charges for Covered Services After that window closes, termination fees spelled out in the agreement can apply, and on multi-year contracts they can be substantial.
If You’re Not on Municipal Infrastructure
Rural homes and properties outside city limits often rely on alternatives that function as utilities but work on different payment and maintenance arrangements.
Propane and Heating Oil
Where natural gas pipelines don’t reach, propane and heating oil fill the gap. A delivery truck refills a storage tank on your property, either on a schedule or when you call. With propane, the first decision is whether to lease or own the tank. Leasing typically costs $100 to $180 per year and locks you into one supplier, but the company handles maintenance and safety inspections. Owning the tank eliminates the annual fee and lets you shop for fuel, but inspections and recertification become your responsibility.
Septic Systems
Homes without municipal sewer use a private septic system that treats wastewater on-site. The EPA recommends inspection every one to three years and pumping every three to five years, at roughly $250 to $500 per visit. Replacing a failed conventional system runs $5,000 to $15,000.4US EPA. Why Maintain Your Septic System The EPA also publishes voluntary national guidelines that communities use to manage these systems and protect groundwater.5U.S. Environmental Protection Agency. Septic Systems Reports, Regulations, Guidance, and Manuals If you’re buying a home with a septic system, get an inspection before closing. Slow drains and wet spots in the yard are often the first visible signs of failure, and by then the repair is already expensive.
Solar and Net Metering
Homeowners with solar panels interact with the electric utility differently. Under net metering policies available in most states, excess electricity your panels send back to the grid earns a credit on your bill. Each state sets its own rules: some credit you at the full retail rate, others at a lower wholesale rate, and carryover terms vary. The policy in your state is one of the biggest factors in how quickly solar pays off.
Who Pays in a Rental or HOA
For renters, the lease is the controlling document. It might assign water, sewer, and trash to the landlord and leave electricity, gas, and internet to the tenant. It might roll everything into an “all-inclusive” rent. There’s no universal rule, which is why reading the lease closely before signing matters more than any assumption about how utilities “usually” work.
Master Metering and RUBS
In many multi-family buildings, a single meter tracks the whole property’s usage. The landlord gets one bill and passes the cost through to tenants, often using a Ratio Utility Billing System. RUBS divides the total bill using a formula that may weigh square footage, number of bedrooms, number of bathrooms, or occupants — the landlord picks the variables. If your lease mentions ratio billing, ask which variables are used and look at a sample calculation. A formula based on occupancy hits a single person very differently than one based on square footage.
HOA Fees
Homeowners in HOA communities often find certain utilities bundled into the monthly fee, most commonly water, trash, and exterior maintenance. The governing documents list exactly what’s covered, and those terms can change when the association votes to adjust services or levy a special assessment. Before buying into an HOA, review the current budget and recent meeting minutes.
Liens on Unpaid Bills
Homeowners who fall behind on utility payments face a risk renters don’t: a utility lien on the property. A recorded lien attaches to the title and has to be paid before you can sell with clear title. In some jurisdictions, utility liens carry the same priority as tax liens, which means they get paid ahead of most other debts, including the mortgage, in a foreclosure.
Your Rights as a Tenant
Nearly every state recognizes an implied warranty of habitability. Landlords must keep rental property safe and fit for living, which generally means working plumbing, adequate heat, hot water, and functioning electrical systems. A landlord who ignores a broken furnace in January isn’t just being negligent; they’re breaching a legal duty.
When habitability fails, tenants in most states can withhold rent until repairs are made, pay for repairs and deduct the cost from rent, or terminate the lease. Procedures vary, so check your state’s tenant protection statutes before acting. Document everything: photos, written repair requests, dates. If the dispute reaches court, that record is your case.
Illegal Shutoffs
A landlord who deliberately cuts off electricity, water, gas, or heat to pressure a tenant into leaving is committing a “self-help” eviction, and it’s illegal in virtually every state. This holds even when the tenant owes back rent. The lawful remedy for unpaid rent is formal eviction through the courts, not shutting off a valve. Tenants facing an illegal shutoff can typically seek emergency court orders to restore service and may be entitled to damages, and some states impose specific statutory penalties on landlords who use the tactic.
Disconnection Rules When You Fall Behind
Utility providers can’t shut off service the moment a bill goes unpaid. State regulations require written notice before disconnection, typically between 6 and 15 days depending on the state. That window gives you time to pay, set up a payment plan, or dispute the charge.
Many states impose additional protections during dangerous conditions. Extreme weather moratoriums block disconnection during severe cold, heat waves, or poor air quality. Medical protections are available in most states for households where someone depends on electrically powered medical equipment; a physician’s certification can delay or prevent disconnection, though the specifics and renewal rules differ by state. These protections don’t erase the debt, but they keep service on while you arrange payment.
Help Paying Utility Bills
Two federal programs help low-income households with utility costs. Both are worth checking before a bill becomes a disconnection notice.
LIHEAP
The Low Income Home Energy Assistance Program helps cover heating and cooling. States set their own income thresholds within a federal range: no lower than 110% of the federal poverty guidelines and no higher than 150%, unless 60% of state median income produces a higher cutoff. For a family of four in the contiguous U.S., 150% of the federal poverty guidelines works out to $48,225 in 2025/2026.6The LIHEAP Clearinghouse. LIHEAP Income Eligibility for States and Territories Applications run through your state or local LIHEAP office; call 1-866-674-6327 to check eligibility or find contact information.
FCC Lifeline
Lifeline provides a $9.25 monthly discount on phone or internet service, or $34.25 per month for eligible subscribers on Tribal lands. You qualify if household income is at or below 135% of the federal poverty guidelines, or if you participate in programs like SNAP, Medicaid, SSI, federal public housing assistance, or Veterans pension benefits. Only one Lifeline benefit is allowed per household. If your provider doesn’t charge a monthly fee for Lifeline service, you need to use it at least once every 30 days to keep the benefit active.7Federal Communications Commission. Lifeline Support for Affordable Communications