Your Guide to Apartment Utilities: Budgeting and Tips

Have you ever stopped to wonder what goes into budgeting for your monthly accommodation expenses? If I can be of some help, let me list down some of the key considerations most of us will have,

1. The monthly rent or weekly rent, depending on which country you are in.
2. Transport accommodation especially if you are staying miles away from work and that journey include toll payments.
3. Quick access to the nearest amenities around the locale.

Funnily, a broad survey of mine done across 100 individuals found only 12% of participants that include the monthly utility bill in their consideration. Among the bigger chunks of expenses, the monthly utility bill is an expense that many people forget to consider.

In general, utilities refer to accommodation expenses that cover electricity, gas, clean water, garbage collection and sewerage services. In modern times, these expenses are stretched to include connectivity services such as cell phone services, internet and streaming services.

Depending on your lifestyle, utility costs can add an additional 15% – 25% on top of your monthly rental payments. Read on for a breakdown of the average utility costs and how you can save on your various bills.

How much should I budget for my accommodation in Malaysia?

In Malaysia, the accommodation expenses are straightforward and can be broken down into a number of standard components. The services below are a snapshot of renting in Selangor but can be taken the same for the different states across Malaysia.

1. Electricity services- Tenaga Nasional Berhad (TNB)
2. Water services- Air Selangor
3. Sewerage services – Indah Water
4. Internet services – Commonly Unifi and Maxis Home Fibre. Alternatively, TIME Fibre Internet provides excellent services despite the smaller coverage
5. Cell phone services – Prominently Maxis, Digi and Celcom.
6. Streaming services – There is a wide option to choose from, ranging from Netflix, Disney+, and local providers such as Astro.

From the breakdown on utilities, it is better to budget around RM300 – RM900 if you are looking to rent an apartment with your family. On the other hand, if you staying alone (Single or Shared Room), it will be good to arrange RM150 – RM450 for the common utilities.

With that said, the cost of utilities varies with different factors,

1. Location of the apartment
2. Lifestyle and usage of the different utility services
3. Utility provider – mobile, internet and streaming services
4. Apartment size – smaller units tend to consume less energy

For example, did you know the electricity tariff rate is lower in Sarawak than it is in Peninsular? For the first 150 units, Sarawak Energy’s rate is 18 cents as compared to TNB’s rate of 21.8 cents.

On the other hand, smaller units have less room with fewer lighting fixtures and air-conditioning. Naturally, utilities are going to be cheaper in smaller units like a studio or a 1-bedroom.

---

How much is the estimated monthly electricity bill?

The electricity bill is likely to be the largest portion of the total utility bill. In Malaysia, the electricity bill for a 3-bedroom apartment with cautious use of air-conditioning will likely be RM80 – RM350. In some cases, frequent usage of air-conditioning can increase the bill significantly.

There are 2 major contributing factors that determine your electricity bill,

1. The size of your apartment – The bigger the place, the more electricity you need to cool the place.
   A bigger floor space and higher ceiling height can both impact your electricity bill.
2. The number of roommates – If you have more roommates, it also means more lights and phones being charged.
   On the other hand, it can become challenging to manage different lifestyles. Some roommates prefer turning on the air-conditioning more frequently.

How can I reduce my electricity bill?

Saving on electricity bill is not difficult. It is in fact about being smart with how you use electricity and putting in place the necessary habit. Below are 10 no-cost low-cost steps to reducing your electricity bill, including tips and tricks. Turn off unnecessary lights – If you don’t need it, turn it off. Keeping the lights on at all times reduces the lifespan and increases the bill.

1. Use natural light

Opening up the windows to allow for more natural lighting helps brighten the place and save on electricity. At the same time, using lighter wall colours help to reflect those natural lighting better.

2. Use task lighting

Do you realise that downlights often do not provide enough light for reading purposes?

If you are on your desk sorting out paperwork or doing a casual reading, opting for table lamps or track lighting is a good idea. It improves readability and protects the eyes. At the same time, helps save electricity along the way.

3. Opt for LED lighting

LED lights are up to 80% more efficient than traditional lights and last six times longer. Not only are you reducing your electricity bills, but you also spend less in the process of replacing lights.

From a more environmentalist perspective, using LED lights also reduces demand from power plants and decreases greenhouse gas emissions.

4. Unplug electronics if not in use

Standby power can account for 10% of an average household electricity use.

Did you know that a phone or laptop charger is still conducting electricity when it’s left plugged into the power socket? If you do not believe it, try plugging in your mobile phone to the charger without turning out the switch. You will see a temporary “charging” sign although the power supply is not turned on.

5. Change out old electronics

Have you heard about inverter washing machines, water heating and air-conditioning? These technological marvels are something worth considering!

For example, an inverter air conditioner is 25% more effective, reaching the desired temperature faster than the regular air-conditioners. At the same time, an inverter air conditioner consumes 40% less electricity, saving you a considerable amount of money on your monthly electricity bill.

This is especially useful if you are reliant on air-conditioning to cool your house on a regular basis.

6. Service your air-conditioner

Having your air-conditioners serviced regularly keeps it running efficiently, cooling your room or home much faster. It also means less electricity use and lower monthly electricity bill.

Another way to save electricity and cash is to clean the filter yourself every month. A clean filter can reduce your electricity consumption by 5% – 15% and it does not cost anything other than your time and some water.

7. Use ceiling fans

Do you really need to use an air-conditioner to cool down your room and home? In reality, ceiling fans consume far less energy than air-conditioning, making them a cheaper alternative to air-conditioners. A ceiling fan at top speed consumes less energy than a 100W light bulb and is 47% more cost-saving compared to other cooling appliances.

Ceiling fans are considered more effective than the table fan and floor fan because they can effectively move large volumes of air, redistributing air around the room to make the room cooler.

8. Wash on a full load with cold water

if you have not heard, you do not need to wash your clothes every night. Ideally, collect your clothes into a basket and wash them in one shot when the machine is fully loaded. It might be one wash per week or maybe two depending on the family size.

9. Use microwave oven instead of regular oven

Have you heard friends and families say microwave is not safe and is bad for health?

That is not true! According to the U.S. FDA, microwaves are a safe, effective, and highly convenient cooking method. There is no evidence that they cause harm as long as the safety tips are adhered to.

10. Set the fridge and freezer to the right temperature

A refrigerator is a good tool for keeping food fresh and ready for consumption. However, you do not need to push the machine to the extreme.

Keeping the refrigerator temperature at 4°C and the freezer at 0°C is optimum and reduces the amount of electricity spent.

---

How much is the estimated monthly water bill?

Typically, the monthly water bill does not cost more than RM50. However, this very much depends on how you use water and the different habits you may have in relation to water usage.

Is it possible to save money on water bill?

The typical water bill does not cost too much in Malaysia, the average water bill is between RM25 – RM50 every month. However, water is an important resource we should not take for granted. As Malaysians, we tend to take the abundant water supply for granted without realising how expensive and limited clean water is in other countries.

1. Invest in a dishwasher

Surprisingly, washing dishes by hand can use up to 25 gallons of water per load. A dishwasher on the other hand uses only 5 gallons of water per load. That is 80% savings in water usage.

2. Wash on a full load

A 10kg washing machine typically consume 9 gallons of water per load. Running your washing machine on a full load is a great way to reduce energy use and water use.

3. Take shorter showers

Statistically, a single bath can use up to 50 gallons of water. Taking a shorter shower uses less water – a 10-minute shower uses as little as 25 gallons of water.

Similarly, turning off the faucets when you use soap and shampoo is an effective way in reducing water usage.

---

How much is the estimated monthly internet bill?

You’d be surprised how often people often overlook the internet bill despite it being an essential utility in this day and age. The typical internet bill every month is around RM120 – RM180 depending on the service provider and speed.

However, before you decide on your internet service plan, think about your daily consumption. If you use the internet for casual web browsing and social media scrolling, you can live with a cheaper plan of about 10Mbps.

On the flip side, if you use the internet for video streaming or online gaming, then it will be better to go for faster speeds. In this case, you will want to look out for internet plans with 20+ Mbps.

So it will be wise to choose a suitable internet plan fitting your requirements.

How can you save money on internet bills?

Honestly, saving money on your internet bill is difficult, but not impossible.

1. Bundle your internet services

If you are using a service provider that offers cellular, cable and internet services, then you better check out their bundled rates against the independent services. You may be able to save substantially on your monthly internet bill and enjoy higher speeds, bandwidths.

2. Use a mobile hotspot

Not ideal in most cases, but if you have a cell phone plan that offers an unlimited mobile hotspot, you can use that to connect some of your devices to the internet while enjoying some savings.

3. Consider changing service provider

Do you know the cost to acquire customers for these service providers is very expensive? It might be worthwhile giving the customer service a call, letting them know that you’re considering switching services to a competition with a lower rate.

So if you are enjoying the service but are looking for better savings, let them know about it.

---

Final Words

Moving apartments is always exciting and it should not be bodge down by the finances.

As a rough rule of thumb, do expect to spend about 20% of your monthly apartment rent on utilities if you are living with the family or alone. If you intend to live with roommates, the estimated monthly utility is around 20% of your monthly apartment rent.

I hope the above budgeting and tips on utilities have been useful to you.