Multi-family properties and Utility Bills

Multi-family properties and Utility Bills

Colonia, NJ · Member since 2015 · 83 posts · 17 votes

Once you get your tenants movie in (All units have separate meters), do the tenants have to sign up with the gas company, utility power company and water company so they get bills in their own name sent to their unit? or would you as the property owner get 4 separate bills, then deliver them to the tenants to pay each month? I would assume same goes for the sewage tax/bill too. 

How would you set it up so each unit gets their own bill?

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Jerry W.Pro Member
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Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
10y

Yes they need to put the utilities in their name.  That way they pay a deposit with the utility company to make sure the utilities are paid.  Some utility companies have programs to let landlords have agreements that if the utilities are going to be shut off they will revert back to the landlords name and they send the landlord the bill after that date.  This is very nice in cold climates so you don't end up with frozen pipes and other damage.  There is usually a form on their website to do this.

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  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    10y
    Definitely have them put it in their name. One less headache for you. Now it would have to revert back to you on turns, and there could be a fee for that.
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    10y

    Yes they need to put the utilities in their name.  That way they pay a deposit with the utility company to make sure the utilities are paid.  Some utility companies have programs to let landlords have agreements that if the utilities are going to be shut off they will revert back to the landlords name and they send the landlord the bill after that date.  This is very nice in cold climates so you don't end up with frozen pipes and other damage.  There is usually a form on their website to do this.

  • Rental Property Investor · Eau Claire, WI · Member since 2015 · 38 posts · 20 votes
    10y

    The only thing I would add is you may want to keep the water in your name and give them that bill to pay. I know for us if the water gets behind its the one utility they will go after the home owner for. That may depend on the state you are in.

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