Middleton, MA · Member since 2015 · 45 posts · 11 votes
I am looking at buying a deed restricted low income multi-family here in Massachusetts. Currently it has separate electric, but the water and gas heat is not separate and is included in the rent. Since the maxumum rent for each unit is mandated, I was considering further separating the utilities from the rent. As I understand it, the low income renter is still entitled to a small allowance for utilities.
Has anybody had success sub-metering the gas and water for each unit and are there any possible pitfalls you are aware of when doing this to a deed restricted low income multi family? Thank you. I appreciate it.
@James Loisou I have not but I'm curious if anyone else has. Have you called around for quotes on this yet?
I'm not sure how many units this multi is but if you separate the water and individually meter each unit their are special laws that you have to adhere to in mass that might deter you unless it is a big enough property.
Hi @Rob L. , I have not called around for quotes yet. I am just starting to research the issue. It would be nice to find a legal way to do it. I will let you know if I find anything of merit. With those strict maximum rent limits in low income units, it would be nice to somehow eliminate or minimize some of the monthly variables.
On March 16, 2005, a water submeter law went into effect in Massachusetts. This law allows landlords to bill tenants for water if the tenant moved into an apartment on or after March 16, 2005 and the property meets the law’s requirements.
Under the water law, landlords may bill tenants separately for water if all of the following requirements are met
Landlord has installed submeters that measure actual water used in your apartment;
Landlord has installed low-flow fixtures;
Your tenancy started on or after March 16, 2005
Previous tenant was not forced out;
There is a written rental agreement that spells out water bill arrangements; and
Landlord has filed proper certification.
If the landlord has failed to follow any one of the above requirements, he or she cannot bill you directly for water. To find out more about the new water law download the one-page flyer and booklet.
One thing to think of is what is normal in the area I know in my area its normal for tenants to pay electric and gas but water is normally paid by the landlord. If someone in the area tried to get tenants to pay water they would probably have issues finding tenants.
@Rob L. Thank you for posting that. It looks like there is some potential. I will research further, get some general quotes, and I will definitely let you know of my results. I appreciate it.
@Thomas Quinn You bring up a very good point. My thought is that this would work best in the higher end areas where the state mandated maximum rents for low-income units are so far below their restrictionless counterparts.