How to figure out utilities cost?

Question

Hello, I am a homeowner in Sacramento, CA looking to purchase a second home. I am currently analyzing deals and I am unsure how to figure out utilities for expenses. Can someone share what they use to figure theirs out or offer where I can look to find out? Thanks in advance.

Mike McCarthy · Answer

@Daniel Molina if you have a property in mind, call the electric/gas company. If you tell them you are considering buying, but are concerned about the bills, They will give you the average bills for the past year for that property. Of course it’s not foolproof, but that will help point you in the right direction.

Jon Schwartz · Answer

@Daniel Molina, if you’re renting out a single family home, it’s common to make utilities the tenants’ responsibility.

Good luck!

Jon

Daniel Molina · Answer

Thanks DJ, useful insight.

DJ Dawson · Answer

@Daniel Molina I would keep trash in your name and just tack it onto the rent. I do this because if your trash isn’t getting picked up you put yourself in a position to be written up for code violations by the city

Brianne Leichliter · Answer

I agree on reaching out to the utility companies directly.  Trust me when I say that "average" from one property to another in the same area is not typically a smart move.  There are a lot of factors that impact utility costs.

Reaching out to the utility companies and asking for the average over the last 12 months will give you a figure to use for your analysis.  If the property is vacant, those numbers won't be accurate and you'll need to do something else.

I've never had any issues with utility companies providing me the information on the property.

Daniel Molina · Answer

@DJ Dawson

Thank you DJ. I would assume always have the renters pay the utilities.

DJ Dawson · Answer

@Daniel Molina hey Daniel

I would suggest doing what others have mentioned reaching out to the team utility companies, also is the house you’re interested in on the market? I’m sure the sellers agent can help connect the dots too.

From utilities perspective you got:

Water

Sewer

Trash

Gas

Electrical

Security system (maybe)

Pest (maybe)

Insurance

Just off the top of my head

Daniel Molina · Answer

@Jon Schwartz

Thank you.

Jon Schwartz · Answer

Per year? Down here in LA, I ballpark $60/unit/month for apartments. A house is probably $75/month.

If you're a homeowner, and you're looking to buy a home similar to yours, you should be able to dial in a very good utility estimate by looking at your own utility bills. Just add up what you pay in a year for water, trash, electricity, and gas.

Best,

Jon

Daniel Molina · Answer

@Mike McCarthy

Thank you

How to figure out utilities cost?

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