Paying heating costs for your tenants because you have an oil burning furnace?

[Brian Fernandes]

Hey Everyone,

I came across a cash flowing multi after getting all the numbers from the seller. 

The seller currently pays for water, and heat, but charges pretty solid rents of $1200, $1050, and 950. for the area.

 Heating costs every month are around $700 per month.

My only concern is the fluctuating costs of oil.

Any thoughts?

[Mark Gallagher]

@Brian Fernandes

I've found that paying utilities for tenants can be beneficial as long as you have their respect and they will not abuse it. 

If your cost is $100/unit/month, tenant would rather pay $150/month to you rather than put the utilities in their own name. As @Rob Beland said you can usually cover your costs and then som.