Ratio Utility Billing (RUBS)

[Erick Caffarello]

Greetings BP!

I'm about to buy my first multi unit, and currently the owner pays gas, water, sewer, and trash.  Also, the building is in need of significant repair and current rents are $375 for an efficiency up to $575 for a 2 bedroom.  The utility company says gas usage peaks at over $300 in December. 

I'd first need to increase each rent by at least $50 (its also in an up and coming area), replace the roof and do some hopefully minor cosmetic updating.

For those of you who have acquired multi unit buildings with current tenants and one utility meter, have you had success with RUBS (ratio utility billing)?

All tenants are on month-to-month leases, so its possible that they'd all move out once I instituted the changes.

Any advice?

Thanks folks,

Erick