How We Handle Utilities — And Why It's Better for Everyone

Utility costs in Ohio have climbed steadily over the past several years. Electric rates, natural gas prices, and water charges have all increased — in some cases significantly — and that trend doesn't show signs of reversing. For landlords and residents alike, utilities have gone from a background line item to a real financial concern.

The traditional model — where residents set up utilities in their own name when they move in — creates friction at every stage and leaves both sides more exposed than they need to be. We handle things differently, and the reasons why are worth explaining.

The problem with the standard utility model

In most rental situations, the handoff goes like this: a resident moves in, calls the electric and gas companies, sets up accounts, pays deposit fees (which can run $150–$300 or more per utility if credit is thin), and gets billed directly each month. When they move out, they call again to disconnect. The next resident starts the process over.

For residents, the deposit burden at move-in adds real cost on top of an already expensive transition. For property owners, the gap between a departing resident disconnecting service and a new one setting it up creates windows where heat, water heaters, and sump pumps can go unmonitored — particularly dangerous in winter, when an unheated property can develop frozen pipes within hours of temperatures dropping.

There's also the issue of delinquency. When a resident falls behind on their utility bill, the utility company doesn't notify the property owner. Service can be cut off quietly, and the owner finds out the hard way — often after damage has already occurred.

How we do it instead

Utilities stay in our name

We keep electric, gas, and where applicable water accounts in Dorian Gray's name, on autopay, across all of our properties. Service never lapses between residents. There's no window where a property sits dark or unheated, and we're always the account holder, which means we know immediately if there's a problem.

Residents pay a flat monthly fee

Rather than billing residents for actual usage — which fluctuates, creates disputes, and requires administrative overhead — residents pay a flat monthly utility fee alongside their rent. The fee is set to reflect realistic average usage for the property. It's predictable, simple, and requires no extra accounts or logins.

We use Apples to Apples to reduce costs across the portfolio

Ohio's deregulated energy market means you can choose your electricity and natural gas supplier — and rates vary considerably between them. The PUCO's Apples to Apples comparison tool makes it possible to compare suppliers side by side on a standardized basis.

Because we manage utilities across multiple properties, we can evaluate supplier options at scale and select rates that benefit the entire portfolio — not just one address. Lower rates across the board means the flat fee we charge residents stays lower, and we're not subsidizing an expensive default rate that no individual resident would have thought to shop around.

What this means in practice

The winter protection piece is worth dwelling on. A vacant or poorly monitored rental that loses heat during a cold snap can develop frozen and burst pipes within a single night. The resulting damage — drywall, flooring, cabinets, structural repairs — routinely runs into the tens of thousands of dollars. Insurance may cover some of it, but the deductible, the lost rent during remediation, and the hassle are significant. Preventing it entirely is the better outcome, and keeping utilities consistently on and monitored is the primary way to do that.

A note on fairness

A flat fee model always raises the question of fairness — what about residents who use very little? It's a fair concern. We set flat fees at realistic averages for each property, not at peak usage. A resident who is conscientious about their usage may pay slightly more than their actual consumption; one who is less so pays slightly less. Over a lease term, it tends to balance out, and the administrative simplicity and protection benefits are worth the trade-off for most people.

What residents gain — no deposit burden, no account management, predictable costs — is tangible and immediate. The friction of setting up and tearing down utility accounts at every move is something most people don't fully appreciate until they don't have to deal with it.

If you're a property owner considering this model

The utility-in-management-name approach requires administrative discipline. Accounts need to be tracked, autopay needs to be reliable, and billing to residents needs to be consistent. Done right, it's one of the cleanest ways to de-risk a rental portfolio — particularly in Ohio, where winters are real and utility lapses can have real consequences.

If you own rental property in the Dayton or Columbus area and want to talk through how this fits with your portfolio, reach out. It's one of the things we manage as a standard part of our property management service.