One Electric Meter for Two Units

[Jennifer S.]

I'm considering purchasing a triplex where two of the units share an electric meter and all three units share a water meter. I'm not purchasing this property at a discount so I want to make sure it's worth it. Is it worth dividing the electric meter? Is there a way to implement a RUBS system of some sort for a smaller property like a triplex?

[Andrew S.]

Splitting services is definitely ideal, but not always possible or practical.  The easiest way to avoid it is to include all services in the rent and estimate use for each unit, based on square footage or number of bedrooms, bathrooms, etc.  Then set the rent accordingly.  This works reasonably well for many situations, but it can lead to issues when you happen to have a particularly wasteful tenant that uses excessive amounts of water and/or electricity.