Investor · Suwanee, GA · Member since 2015 · 114 posts · 24 votes
We have a quadruplex under contract and looking to close this property in two weeks. Currently 4 units rents for $750 and one for $800 as they have washer/dryer. Owner pays the water bill as there is only one water meter for the building. During inspection time, we met the seller and she was owners about the water bill which is potentially a cash flow killer. It varies between 400-700/month and looking for advises from experts here to solve this and keep this manageable and under budget.
The property is in Dekalb county, Georgia.
Second question is, because this is a cash deal, should we do an appraisal before closing ?.
Looking for your valuable suggestions.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
8y
You can't just submeter/RUBS and bill back to tenants if that is not in their lease. You can do that and then wait to bill back to tenants until their leases come up for renewal, but then you risk them not agreeing and moving out and now you have a vacancy.
I would replace any old 1.6 gallon per flush toilets with newer 1.2s. You could retrofit the old toilets instead of replacing them with a kit that costs about $30/toilet.
You may also want to check all of the toilets for internal leaking/running and replace the flappers of any toilets that are doing that. Also check all of the sink and shower/tub faucets for drip leaks. Tenants won't inform you of these things unless they are an inconvenience (they aren't if the tenants aren't paying the bill).
Low flow shower heads and faucets are also a good idea and will pay for themselves quickly.
I would also close the valves leading to any exterior hose bibs and change out your landscaping to plants that don't need extra water. You can set up rain barrels to catch water from your downspouts to help with gardening.
Tucson, AZ · Member since 2017 · 96 posts · 58 votes
8y
Moncy,
I'm in the same boat in trying to turn over water costs to the tenant. I recently listened to podcast #60 w/ Serge who turned a 32 unit I believe and sub-metered everything. His method required zero money for installation, and the fees from the company were charged to the tenant so it was pretty much a no brainer. The company basically setup the meters, and acted as the water company. Owner was still on the hook for the water with the city, but reimbursed through the company. Upon moving in, the tenant had to call in to 'turn the water on', and if the tenant didn't pay, the water was shut off.
I'd suggest having a plumber look at it, and figure out ways to attach a sub-meter with a lock box type of installation. Sometimes it's just a plug and play, or it may have to be a big plumbing job. Just depends on the configuration of the plumbing and how it's set up.
Rental Property Investor · Phoenix, AZ · Member since 2016 · 553 posts · 314 votes
8y
First place to start is putting a lock on the outside water faucets. Then stop any plumbing leaks. Then replace shower heads, faucets and toilets. Then look into submetering or RUBS.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
8y
You can't just submeter/RUBS and bill back to tenants if that is not in their lease. You can do that and then wait to bill back to tenants until their leases come up for renewal, but then you risk them not agreeing and moving out and now you have a vacancy.
I would replace any old 1.6 gallon per flush toilets with newer 1.2s. You could retrofit the old toilets instead of replacing them with a kit that costs about $30/toilet.
You may also want to check all of the toilets for internal leaking/running and replace the flappers of any toilets that are doing that. Also check all of the sink and shower/tub faucets for drip leaks. Tenants won't inform you of these things unless they are an inconvenience (they aren't if the tenants aren't paying the bill).
Low flow shower heads and faucets are also a good idea and will pay for themselves quickly.
I would also close the valves leading to any exterior hose bibs and change out your landscaping to plants that don't need extra water. You can set up rain barrels to catch water from your downspouts to help with gardening.