Utilities included? Look past the headline rent.

A recent price report, a practical rental question

The Bureau of Labor Statistics reported on October 14, 2026 that its electricity price index was 4.4% higher in September than a year earlier. That is a national consumer-price measure, not the change in your property's bill. Local rates, usage and the lease determine what an owner actually pays.

For an investor, the useful question is simple: how much of the advertised rent remains after the utilities you cover? A higher rent can come with higher obligations. Bring those details into your purchase or refinance discussion with Pillar. Start your application, or check loan options while you compare properties.

Find out what the rent actually includes

Make a short responsibility list for electricity, heating fuel, water, sewer, trash and any bundled internet service. For each item, identify who holds the account, who pays the bill and whether any reimbursement is documented. Check the lease and actual bills together rather than relying on a listing's shorthand.

For an occupied rental purchase, ask the seller or manager to explain shared meters, common-area service and charges that stay with the owner during vacancies. Do not assume that an existing arrangement can be changed when ownership transfers. Have the property manager or qualified local adviser review lease terms and applicable billing rules before proposing changes.

Compare the dollars left after utilities

Consider two hypothetical rental arrangements. One collects $2,700 a month with utilities included and budgets $300 for owner-paid utilities. That leaves $2,400 before all other costs. Another collects $2,500 while budgeting $80 for the utilities the owner still covers, leaving $2,420.

The second arrangement leaves $20 more each month after this one expense category, despite advertising $200 less rent. Neither figure is profit: debt payments, taxes, insurance, maintenance, management, vacancy and other costs still need to be considered. These are invented comparison assumptions, not market rents, a loan offer or a lender's DSCR calculation.

Give seasonal bills a fair comparison

Ask for a full year of available utility bills and note occupancy during that period. A lightly used vacant home may not be a useful model for an occupied rental. Look for seasonal peaks, fixed service charges and known rate changes; label missing information as an estimate.

Use the annual total divided by 12 for a comparable monthly average, then keep the high-bill months visible in your cash calendar. Averages help compare properties, but the actual bills arrive unevenly. Recheck the budget if the lease includes a different service package or the occupancy pattern changes.

Bring the lease details into the financing conversation

Your ownership budget and the lender's qualifying-income calculation serve different purposes. Show Pillar the stated rent, utility responsibilities, any documented reimbursements and supporting bills. Ask how the proposed program treats those items; do not assume that every dollar collected is qualifying rent or that your own expense subtraction is the program's formula.

For a rental purchase, this makes your property comparison more useful. For a refinance, it helps you review the proposed payment alongside the costs you will continue to carry. Agents and referral partners can add value by organizing these details before the financing discussion.

Explore rental purchase or rate-and-term refinance options below. Start your application with the property and lease information, or check loan options while you build the comparison. The goal is a financing plan that fits the property you will actually operate.