BiggerPockets

Never thought I'd write a post about water conservation, but the I have noticed a trend that is affecting our bottom line.

Some back story. While we require some of our tenants to pay their water bill, not all of them do and on our multi units we pay the water and sewer bills.

In the past two years our water and sewer costs have gone up in a very noticeable way. So much so, that it is effecting our expenses ratio and we are actually considering moving to another secondary market. Between property taxes and this latest issue with water prices, are bottom line is getting thinner.

Which leads me to my question. How do you landlords contain water and sewer costs? Any simple (cheap) or green technologies that you use. If your tenants pay for all of the water expenses, what is your process and how do you enforce payment?

Thanks in advance,

Fortunately, I no longer own any properties where I get billed for the water if the tenant doesn't pay. When I did, I had the tenant pay their own water and then I checked with the water company monthly to make sure the tenant paid the water. If they didn't, I sent them a written notice that I would evict them if the water wasn't paid promptly.

Unfortunately, the local sewer gets charged to the landlord if the tenant doesn't pay (and they don't have too much motive. What's the city going to do? Cut off their sewer access?). There is a gigantic late fee if the bill isn't paid, so I just keep the sewer in my name and make sure it's paid. At least it's flat rate.

Our fine city has discovered that they can raise sewer and water fees to increase their income without getting voter approval of a tax hike-- so that is what they have been doing every time they turn around. Not much can be done about that. Going to town hall meetings and protesting hasn't slowed them down.

Originally posted by Matthew Gil

Although, I doubt landlords will be able to force tenants to follow some of the article's suggestions.

Come to a red state Matt where you're actually allowed to "lord" the land you bought. :wink:

In all seriousness this is what took me off of 2-4 unit properties. They seem to have apartment complex "expense leakages" with SFR incomes.

Do what I say.. since I am your father..er, I mean Property Manager!

Have the tenants pay their own bills, and decrease the rent by 25.00.. they will think they are getting a deal, and you will still be getting an increase of at least 25.00 per month.

Problem solved. and Since I am your pitbull, I will be the bad guy if the bills don't get paid. Ta da!

BTW, I have been doing some research regarding this issue and I'm looking to maybe replace some hardware with stuff like:

Replace toilet internals
Example: Fluidmaster® Complete Toilet Tank Repair Kit

Replace shower head to a low-flow shower head
Example: ACE Hardware Whedon® Deluxe Ultra Saver Shower With Push Button (USB4C)
Example: http://www.usalandlord.com/ul15gpm.html

Replace all kitchen and bathroom facets with a low-flow aerator
Example: http://www.usalandlord.com/5gpmfaae2.html

I know that you can go crazy by spending more money and install stuff like tank-less water heaters and dual-mode flush toilets, but that starts to get expensive. Something tells me that a tenant would destroy those items before a positive ROI kicks in.