Water Bills
Seems like the owner paying water bill on rentals is standard. Has anybody came up with any other successful setups for the water/sewer bill on multi-family properties? I'm mostly talking along the lines of having the tenants responsbile for it.
If your building has only one water meter, then you have no choice but to pay the water bill. Your rents should take your cost of water into account.
If your building has a separate meter for each unit, then it would be a simple matter to specify in your lease that the water/sewer usage is a tenant expense.
I find that when the tenants are paying the bills, they may be a little more conservative in their consumption.
I just bought a duplex that only has one meter. the previous owner would get the bill and then spilt the bill between the tenants.
I have decided to take a years average, devide by 12 and split it and have them add that amount to the rent.
At the point of new leases i will increase rent to compensate
John
Water, Sewer and Garbage is typically paid by the owner of the property.
The amount of rent should be calculated to include those utilities.
It would be the same as asking the tenants to pay for your Real Estate Taxes. The reason they rent (and pay more) is for the convenience factor.
Hope This Helps!
Mrs. Meltzer
Pass the cost onto the tenants.
Some folks go to the trouble and expense of adding water meters to each unit just to solve this dilemma
I've been dealing with this decision for a while now...I have a huge house divided into duplex apts.
Only 1 water main. I had an estimate to put another water main and it's over $1,000. I have decided to increase the rent about $25-30 a month to cover water bill and include that in the rent.
Does anyone do this, and if so, do you think the $25-30 will cover average monthly water expenses???
In my area I can have the sewage and water billed right to tenant. Drawback is I'm altimately responsible for the bill so I have it set up that if they miss a month water gets shut off and that usally is enough to make them pay up and not run up a huge bill that i might have to pay.
ED