Who pays for utilities?

11 Replies

Hey everyone,

I'm looking into small-multifamily property to house hack here in the Inland Empire, CA and just wondering how common it is for the utilities to paid for my tenants?

As a leasing consultant for a property management company, I usually see tenants pay all utilities. 

@Jerome Morelos I manage in Riverside. If it's a multi-unit and the tenants rent a separate unit from you, tenants should pay their own utilities. If you house hack a SFR out here, you should most likely share the cost of utilities.

I've also seen some ordinances out here in Inland Empire where you need to ensure your grass/lawn is kept in order, so some landlords would actually pay to maintain that on behalf of the tenant. Goodluck bud

Originally posted by @Vinci S. :

@Jerome Morelos I manage in Riverside. If it's a multi-unit and the tenants rent a separate unit from you, tenants should pay their own utilities. If you house hack a SFR out here, you should most likely share the cost of utilities.

I've also seen some ordinances out here in Inland Empire where you need to ensure your grass/lawn is kept in order, so some landlords would actually pay to maintain that on behalf of the tenant. Goodluck bud

 Do you own what you manage or work for a company?

I own what I manage

I invest on the east coast and have tenants pay all utilities. It may be market dependent, but an expense that I haven’t had an issue with passing on to my tenants.

Thanks guys. I guess I would have to make sure that the units are sub-metered, each having their own separate meter. Otherwise, I would have to be responsible for the utilities, correct?

tenants pay for utilities. in a case where you have several tenants break down the monthly utility bills and average it out.

@Jerome Morelos Tenant always pays for utilities. Have separate meters so that each tenant pays their own. Another thing you can do if that isn't an option. is find out how much on average the utilities are on the building for the past two years and then add a little on top so it covers you maybe even make a little at the end. Because that should not be you hassle to deal with.

@Jerome Morelos Definitely look into your state laws...I know here in MA I am not allowed to charge tenants for water UNLESS it is sub-metered correctly.

I am also required to provide heating no matter what during "heating season" even though the heaters are also separate for each unit.

I would also suggest taking a look at other listings in your area to see what common practice is.

Best of luck!

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