Pass water bill to tenants

[Andrew S.]

I submitted an offer on a 6 unit property where the current city water, garbage, and sewer bills are paid buy the owner. The monthly bill is $500 for the complex. I'm investing in a smaller town where it's all base charge and no metering or usage charges. Anyone have experience in best ways to pass this utility charge onto the tenants?

It'll be $83 per tenant which is a significant increase in their monthly bills. Some of the tenants have been there for 8 to 10 years. Current landlord hasn't raised rents in years either so it may be tough for some tenants. To me it seems fair and reasonable for them to pay utilities, but I'm biased. Current rents are 20% below market rent rates.

Thanks!