How do you make a 3rd unit legal/have meters installed?

[Lilah Johnson]

Purchasing a multi-family (2 units) with a third unit that needs work. It doesn't have a separate meter for electrical/gas and is not a legal unit. Anyone know how to go about making it legal/getting meters installed? Anyone have any idea how much that would cost in the Cleveland, OH area? Thanks in advance. 

[Don Petrasek]

Definitely start by contacting the city of Cleveland Building Department for guidance on how to make the 3rd floor unit legal.  It does go beyond adding additional utility meters.  Things like renter egress (their ability to get out in the event of a fire) are considered and depending on the property layout it may not even be possible to have the 3rd unit.  If that's the case, you should be able to at least use it as additional living space for the 2nd floor tenant which will help bump that rent rate up. Also make sure your insurance company is good with whatever you do.  More than one insurance agent has told me that just because I have a policy on a house doesn't mean they're going to pay every claim....you have to make sure you aren't doing something that goes outside of your coverage.