Utilities Question Help

[Hughston Thackham]

Hi all, 

I am just curious of everyone's opinion. I am not in the position to begin investing yet, but I am working on rental analyses until I have the capitol. With that being said, for the experienced investor, do you typically pay for the rental properties utilities? Do you wrap in into the monthly rent? Just curious on which way has been most effective and least stressful.

Thank you!



 

[Jeremy Ellis]

For my single-family properties, tenants are responsible for all utilities. This approach significantly reduces my workload and simplifies budgeting.

However, I do have a six-plex where I cover the water expenses. The city quoted $15,000 for five additional meters, so instead, I added $50 per month to the rent to cover the water costs. Initially, I was apprehensive about paying for utilities, but it has been easy to budget since the units are smaller.

Overall, it's much less stressful and more hands-off when tenants manage their own utilities.