The numbers

How to estimate utilities for a vacant inherited property

When making an offer on a vacant inherited property, factor in the cost of keeping utilities connected, even if minimal, to protect the asset. These holding costs can add up, so include a line item for them in your deal analysis.

October 11, 2026 · 3 min read

Why maintain utilities on a vacant property

Even a vacant property often benefits from minimal utility service. Keeping the electricity on allows for lights during showings and can power security systems.

Maintaining some heat in colder climates prevents pipes from freezing and bursting, which can lead to extensive damage. Similarly, running air conditioning in humid environments can mitigate mold growth.

Water service, while often turned off at the main, might be needed for inspections or minor repairs. Having utilities readily available reduces the hassle and potential cost of reconnection later.

Common utility services to consider

The main utilities to consider are electricity, water, and gas (if applicable). These are usually essential for basic property maintenance and future inspections.

Sewer service is typically tied to water, so if water is on, sewer charges will likely apply. Trash collection might also be a utility if it is billed directly to the property.

Do not forget about potential internet service if you plan to install smart home devices for security or remote monitoring, though this is less common for initial vacant holding costs.

Estimating usage for minimal service

For a vacant property, usage will be minimal, but base service charges still apply. Suppose, hypothetically, your local electric company charges a $20 base fee plus usage. Even with no usage, you still pay the $20.

To estimate, research average minimum utility bills for vacant homes in the area or consult local utility providers for their base rates. You can often find this information on their websites.

Factor in seasonal variations. Heating costs will be higher in winter, and cooling costs in summer. Budget a monthly average that accounts for these fluctuations.

Investigating past utility bills

If possible, ask the seller if he or she has any recent utility bills from when the property was occupied or partially maintained. This gives you a baseline for potential costs.

Some utility companies may provide historical usage data to the current owner or his or her authorized representative. This can offer a clearer picture of typical expenses.

If direct access to bills is not possible, use neighborhood averages for similar-sized vacant properties as a starting point. Your network of local investors might have insights.

Mitigating risk during vacant periods

Beyond utilities, consider property insurance for vacant homes, which can be more expensive than occupied policies. This protects against damage, including those caused by utility failures.

Regular property checks, either by you or a hired caretaker, ensure that any utility issues like leaks or power outages are identified and addressed quickly. This prevents minor problems from becoming major ones.

Install smart thermostats or leak detectors if the property is valuable enough to warrant the upfront cost. These can provide remote monitoring and alerts, allowing you to react quickly to potential issues.

Questions people ask

Should I just turn off all the utilities?

Turning off all utilities can save money, but it also creates risks like frozen pipes in winter or excessive humidity/mold in summer. Weigh the cost savings against potential damage and reconnection fees.

What if the seller already disconnected everything?

If utilities are disconnected, you will need to arrange for reconnection, which may involve fees and scheduling. Factor this into your timeline and budget if you decide to proceed with the property.

How do I get past utility bills without owning it?

You typically cannot directly access past utility bills without being the owner or having explicit authorization. Ask the seller to provide copies or summary statements during your due diligence phase.

What's the biggest risk if utilities are off?

The biggest risks are often related to weather, such as burst pipes from freezing temperatures without heat, or significant mold growth from lack of air circulation and humidity control.