Question on Asking Seller for Utility Bills

5 Replies

Hi All,

I'm currently looking at a 5 family (with potential for a 6th on the top floor) and two commercial storefronts (1 restaurant and 1 clothing store) in my town.  I'll come back with the numbers later.  What I'm looking to find out it is - would it be acceptable to ask the sellers agent to produce the last years worth of gas and electric bills?  If not, what is a better way to validate these #'s.

Right now the building is partially sub-metered and she is not charging the tenants for any utilities (Gas, water, or electric).  I don't think I can sub-meter the water and will have to live with that.  The Gas and Electric is my principal concern.  I will sub-meter the electric for sure.  The problem with the gas is that the entire building is run off of 1 furnace so that may not fly.  If I can recover the electric cost then there is tons of value here (electric is expensive in my area).

Thanks in advance for any advice or past experiences.

@Frank Gucciardo - Yes - she should provide you with proof of expenses. Make sure that you confirm (and re-confirm) with the electric company that they units can be sub-metered. Also - how much will it cost? 

She pays the commercial utilities too? They probably have long-term leases.....

Originally posted by Account Closed:

@Frank Gucciardo - Yes - she should provide you with proof of expenses. Make sure that you confirm (and re-confirm) with the electric company that they units can be sub-metered. Also - how much will it cost? 

She pays the commercial utilities too? They probably have long-term leases.....

 Thanks.  I've asked my agent to make the request.  He is also asking for approval to review the terms of the assumable commercial loan with the bank.

It was unclear about the commercial utilities (except water which she pays in full).  We have another meeting at the property early next week with my GC.  I plan to dig deeper in this meeting.. trying to get my ducks in a row today/tomorrow.

I know in Wisconsin, I have been able to get the utility costs right from the WE Energies-just give the address.

If you are holding this property long term, sub meter everything you can.  If you have to spend the money to do it with the gas and have the means to... do it.  This will be a substantial investment, but it will pay dividends down the road.  In my experience, you are not able to defer the sewer or water on to the tenants by sub metering.  If anyone does have experience in getting that done, I would absolutely love to hear how you went about it because I would be all over that.  

Your from New York, so I am assuming that National Grid handles the utilities.  This is hands down one of the worst run companies, and they have hiked gas rates recently, but the previous owner should be able to get all of his bills sent out, or at least produce the checks that he cut over the past year.  If he can't, Im sure the numbers aren't what he says they were.  Sounds like a cool property.  Good luck.

Medium avellino white copy  jpg Brandon Ingegneri, Avellino Const. & Property Mgmt. | [email protected] | 401‑301‑5528 | https://www.avellinocpm.com | RI Contractor # 41301

Originally posted by @Brandon Ingegneri :

If you are holding this property long term, sub meter everything you can.  If you have to spend the money to do it with the gas and have the means to... do it.  This will be a substantial investment, but it will pay dividends down the road.  In my experience, you are not able to defer the sewer or water on to the tenants by sub metering.  If anyone does have experience in getting that done, I would absolutely love to hear how you went about it because I would be all over that.  

Your from New York, so I am assuming that National Grid handles the utilities.  This is hands down one of the worst run companies, and they have hiked gas rates recently, but the previous owner should be able to get all of his bills sent out, or at least produce the checks that he cut over the past year.  If he can't, Im sure the numbers aren't what he says they were.  Sounds like a cool property.  Good luck.

Thanks  Brandon

I was able to get the bills right from the electric and gas company and the owner sent as well. Everything with the electric is sub-metered already (despite what the RE Agent told me initially). Water has to be paid by the bldg owner. The heat/hot water will have to be figured out later.. will have to determine if it makes sense to just up the rents or pay to get furnaces and hw heaters for all the appts (what is the ROI).

Central Hudson is the power/gas company.. probably no better than National Grid :-)

I'm going to post up the deal analysis in a different post.

Thanks for the feedback everyone

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