Considering a move to Cabo? Understanding local utility costs is crucial for a smooth transition.
This comprehensive guide breaks down everything you need to know about monthly expenses, helping you budget effectively and avoid financial surprises in your new Mexican paradise.
Introduction
When I helped families move to Cabo, Mexico, I saw utility bills become the biggest surprise. The food, the sun, the beaches – all easy to picture. The bills? Not so much.
If you ignore how the local companies charge, the comfort you expected can slip away fast. So you need to know about electricity, water, internet, gas and the little extra costs. The sections below break each one down, give you price ranges and a few tricks to keep the numbers down.
Electricity Costs in Cabo
Mexican electricity works different than the tiered system you’re used to. It’s a flat rate per kWh, with only a tiny seasonal tweak. A normal two‑bedroom place usually brings a bill somewhere between $50 and $150 a month.
The low end is when you use just a fan or two. The high end is full‑blown AC all day in the summer heat. Things that change the price are the size of the house, how good the windows are, which way the house faces the sun and if you have a lot of big appliances.
Compared to the US, Cabo can feel a bit pricey when the desert heat never lets you turn the AC off.
Tips that help: get ENERGY STAR appliances (if you can find them), put a ceiling fan on before you hit the cool button, switch all bulbs to LED, set your thermostat around 78 °F (25 °C) and use a timer if the unit lets you. These steps cut the usage without making you sweat.
Water Utilities
Water from the city works fine for showers and washing, but most expats don’t drink it. The municipal bill is small, usually $20‑$50 a month for a household. Buying bottled or filtered water adds another $10‑$20.
Because it’s desert, saving water is both kind to the planet and easy on the wallet. Fix leaks right away, put low‑flow shower heads on, use faucet aerators and only water the garden when it’s needed.
Those moves also protect you from occasional rate hikes when the region gets low on supply.
Internet and Communication
The main broadband providers are Telmex and Izzi. Their plans run from $20‑$60 each month and give speeds similar to what you’re used to at home. Most plans have a data cap, but you can pay a bit more for unlimited service.
Mobile carriers sell unlimited local and international calling for $20‑$40 a month, and bundling the phone and home internet often saves a few dollars.
If you want to keep costs low, first check how much speed you really need. Ask neighbours if you can share a Wi‑Fi network sometimes. When you sign up, look for promotional prices and ask for a discount if you’re new.
You may like this: How Do I Find Restaurants in Cabo?
Gas and Heating
Most homes use propane for cooking and hot water because natural gas isn’t widespread outside the downtown core. A typical propane bill sits between $30 and $60 each month.
It depends how often you cook, how much hot water you use and how big your tank is. Heating is rarely needed – the weather stays warm – so the cost is mainly for the kitchen and showers.
A cheap move is to buy a larger tank, like the 500 lb one, and have the company give you a bulk price. That can cut the price per gallon by ten to fifteen percent compared to refilling a small tank all the time.
Extra Things Expats Usually Forget
Besides the main services there are a few other fees that can pop up. Trash collection is often covered by the city tax, but some gated neighborhoods charge extra. Property‑management groups sometimes charge $30‑$70 a year to set up utilities.
Because electricity goes up in the summer and you might see occasional line‑item fees, it’s wise to add a buffer of about 10‑15 % to your budget. That extra money helps you stay comfortable even when a bill is higher than expected.
Conclusion
Talking to a local relocation adviser can give you the newest details about rates, contracts and any rule changes. Prices and plans do move, so always double‑check with the provider and ask other expats how they are doing.
With clear budgeting, a habit of saving water and power, and picking the right provider, you can live in Cabo without the utility surprise ruining your lifestyle. The charms of the town stay for you, not the bills.
Understanding utility costs in Cabo is key to a successful relocation. By planning ahead and staying informed, you can manage your expenses effectively.
Don’t hesitate to consult local experts for personalized advice and make your Cabo dream a financial reality.
