Army Joe Needs Utility Advice

Army Joe Needs Utility Advice

Member since 2010 · 2 posts · 0 votes

Hello:

I am in the Army and just bought a Fourplex.

My problem is that the electricity, gas and water are not split up. The current owner/landlord paid utilities. I dont want to do this and am looking into my options of having tenants pay utilities.

I researched and found I can/could use Ratio Utility Billing system which from my understanding just is a formula based on occupants and square footage.

Is this the cheapest way? Does it work?

I dont have alot of money to pay for everything to be separated.

I also was looking into submetering. I see companies out there that will hook up little devices and then bill clients. Does anyone know how much this would cost for a fourplex?

Would it be the same price or cheaper to have an electrician come in and just breakdown each unit for electrical, gas, and water and have them all individually metered?

Confused and lost at this point:)

Any help would be greatly appreciated!

v/r

Gary

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  • Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
    16y

    You didn't specified where your property is, but some states and municipalities would not allow splitting utilities on a commercial residential properties. Also, even if it is allowed, it may work against you should the common convention in the area is that the landlord pays for utilities. Yes, all tenants know that at the end of the day, they pay for it, but they just don't want to deal with it and in these days when competition in the rental market is fierce, you may want to think twice if it worth the effort.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    Hi, doing that on a sq. ft. basis is fair to you but not likely to your tenants since one place is 80 degrees and another is kept at 68. Unless one heating and air unit takes care of the building, if so, you're stuck without major costs! Some older houses that were converted sometimes have that arrangement.
    I'd check with an electrician, if you have four panels, it might not be that much. Your utility company should come out and advise you as well. If you're on a sq ft basis, you might look into some thermostats that the tenant can't easily adjust, like in a commercial building with those plastic enclosures. But, lol, all you have to do to turn the air on if you can't touch it is blow on it!

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