Details City Rent Date Available Beds Baths Half Baths Street Finished Sq. Ft. Levels Fireplaces
Property Detailsalexandria$1,800.00 March 11110oronoco6001
Property Detailsarlington$2,400.00 April 10110crystal7711
Property Detailsarlington$2,375.00 February 01220wakefield1,0061
Property Detailsfairfax$2,500.00 February 01220persimmon1,61011

Utilities in a Vacant Rental? Keep ‘em On!

utilities in a vacant rental

“Should I cut off the utilities in my vacant rental property?”

My answer? No way.

It’s one of the first questions my homeowner clients ask me—and my emphatic answer often surprises them. After all, none of us is eager to have higher bills, and my maintenance staff and I pride ourselves on looking for ways to conserve energy and lower costs for clients.

Yet, at the same time, I know it’s the best advice. Don’t turn off the utilities in a vacant rental. It’s a shortsighted solution that can be enormously wasteful of time, money, labor, and fuel in the long run. On the other hand, keeping everything running as though the house were occupied isn’t the best answer either.

Utilities in a Vacant Rental

Keep Your Future Tenants in Mind

The most successful landlords know how to think beyond short-term costs and put themselves in a tenant’s shoes. When prospective tenants walk through the door, the first thing they do is imagine themselves living in the home. It’s only natural to want to turn lights on, run faucets, and feel comfortable in the space.

If you’re looking for tenants in the coldest part of the year, your best bet is to welcome them into a setting that feels cozy—or at least comfortable. Spending a little extra money on utilities during a vacancy can ultimately be the most cost-effective way to prevent extended vacancies. A good leasing agent or property manager will ensure the home is prepared for showings and then returned to an energy-saving mode afterward.

Yes, You Need All Utilities On (Not Just Electricity)

Many landlords consider keeping only the electricity on, but after 30 years of experience, I can tell you that all utilities should remain in service for a vacant rental home. Water is just as critical as keeping the lights on.

For property owners worried about potential water emergencies, preventing most issues—like burst pipes in winter—is as simple as turning the water off at the main valve. I also recommend taping commode covers shut and only turning the water on temporarily for tenant showings.

Keep the AC Running in Summer—And Winterize in Fall

Another common mistake landlords make is setting the thermostat too high in summer and too low in winter. While this lowers utility bills, it also creates an uncomfortable environment for showings. If it’s the summer season, the air conditioning should be set no higher than 75 degrees. In winter, heat should be set no lower than 65 degrees.

Vacant homes should also be winterized before the cold season. Draining hose bibs and turning off water at the main valve is usually all that’s needed to prevent pipes from bursting during a deep freeze.

Can I Deduct Utilities for Rental Properties?

Yes, certain utility-related expenses can be deducted, such as electricity or gas needed to maintain the property during vacancy periods. However, landlords must actively market the property for rent and keep accurate records to qualify for these deductions. Providing evidence of availability, such as online listings or advertisements, can strengthen your claim.

Utilities in a Vacant Rental

Q&A: Common Questions About Rental Property Utilities

What should you do with utilities when a house is vacant?
All utilities should remain on, but in energy-efficient mode. This means keeping the electricity, water, and gas active, ensuring HVAC systems are properly adjusted, and winterizing the property if necessary.

Should you include utilities in your rent budget?
If the landlord pays for certain utilities, the cost should be factored into the rental price. For multi-unit properties or situations where utilities are included in the lease, budgeting for fluctuations is key to avoiding unexpected losses.

Are utilities usually included in rentals?
It depends on the rental agreement. In single-family homes, tenants usually pay all utilities. In multi-family properties or short-term rentals, some landlords include utilities, especially for water, sewer, and trash collection.

Are utilities considered rental income?
If a landlord charges tenants for utilities as part of the rent, that portion may be considered rental income and should be reported accordingly. However, if tenants pay utilities directly, it is not counted as income.

Can you write off utilities on a rental property?
Yes, landlords can deduct utility expenses on rental properties, as long as the expenses are necessary for maintaining the home. This includes utilities paid during vacancy periods, but landlords should consult a real estate tax professional to ensure compliance.

Final Thoughts

Turning off utilities in a vacant rental can cause more harm than good. Keeping essential services on ensures tenant comfort during showings, prevents maintenance issues, and protects the property from damage. Additionally, many utility costs may be tax-deductible, making the investment even more worthwhile.

Being proactive about utility management is an essential part of successful property ownership. By following these guidelines, landlords can reduce vacancy periods, minimize costly repairs, and maintain a professional rental operation.

Additional Resources for Landlords

Managing utilities is just one aspect of successful property ownership. Explore these additional resources to help you make informed decisions about your rental property:

Essential Questions About Property Management Considering professional property management? This guide outlines the crucial questions you should ask to evaluate property management services, including how they handle utility management during vacancies and tenant transitions.

Understanding the Full Scope of Landlord Duties From utility management to tenant relations, discover what it really takes to be a successful landlord. This comprehensive overview helps you assess whether hands-on property management aligns with your capabilities and goals.

Property Management for Overseas Landlords Living abroad while managing a rental property presents unique challenges, especially when it comes to handling utilities and maintenance. Learn why professional property management might be the right choice for long-distance landlords.

Converting Your Home into a Rental Property Thinking about renting out your home? This guide walks you through the transition process, including important considerations about utility management and responsibility transfers between owner-occupancy and tenant occupancy.

The Biggest Challenges in Property Management Get an insider’s perspective on the most challenging aspects of property management, including utility oversight, maintenance coordination, and tenant communications. Understanding these challenges helps you prepare for successful property ownership.

As a landlord, don’t miss out on valuable tax benefits by overlooking rental utility deductions. If you are ready to rent your home, feel free to take advantage of our exclusive FREE Rental Market Analysis. Finally, don’t forget to connect with us on social media! Follow us on FacebookTwitterLinkedInInstagram, and Pinterest for tips, ideas and updates.