Need to rent out a house with leased solar panels, advise please

Upstate New York, New York
General Landlording & Rental Properties
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Need to rent out a house with leased solar panels, advise please

Don Zhang
Member since 2021 · 7 posts · 0 votes

This single family house has leased solar panels. Currently paying about $130 per month for the lease. Similar properties without solar panels rent for about $2200~2400 in local market. I'm thinking about adding a clause like this to the standard lease contract:

Renter pays $100 for the first 400kWH of actual usage (if actual usage less than 400KWh the electricity bill will be $100). Additional electricity usage will be charged at $0.20 per kWh.

Do you guys think this is acceptable? Typical usage for this size home should be around 600KWh. 

Thanks!

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Don Zhang:

This single family house has leased solar panels. Currently paying about $130 per month for the lease. Similar properties without solar panels rent for about $2200~2400 in local market. I'm thinking about adding a clause like this to the standard lease contract:

Renter pays $100 for the first 400kWH of actual usage (if actual usage less than 400KWh the electricity bill will be $100). Additional electricity usage will be charged at $0.20 per kWh.

Do you guys think this is acceptable? Typical usage for this size home should be around 600KWh. 

Thanks!

It sounds like a lot of work on your part. It would be much simpler to determine a monthly average cost, bump it 15% to cover excess use, and include that charge as part of rent.
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Don Zhang:

    This single family house has leased solar panels. Currently paying about $130 per month for the lease. Similar properties without solar panels rent for about $2200~2400 in local market. I'm thinking about adding a clause like this to the standard lease contract:

    Renter pays $100 for the first 400kWH of actual usage (if actual usage less than 400KWh the electricity bill will be $100). Additional electricity usage will be charged at $0.20 per kWh.

    Do you guys think this is acceptable? Typical usage for this size home should be around 600KWh. 

    Thanks!

    It sounds like a lot of work on your part. It would be much simpler to determine a monthly average cost, bump it 15% to cover excess use, and include that charge as part of rent.
    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    2Reply
  • Don Zhang
    OP
    Member since 2021 · 7 posts · 0 votes
    4y

    Problem is, all other rentals in the area does not include utilities. So if I include the utilities and ask for, say, $2600 a month, potential renters will just be scared away. People usually search for rentals on zillow. When they see $2600/mon, they will not even bother to click and see that utilities are included. Plus, there might be someone who wants to grow weed in the basement and that can use a huge amount of electricity. I know that doesn't happen often but just in case. I mean when they apply they all dress and talk like decent people and have good stable jobs but you never know what's going to happen down the road. 

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  • Robert LaDuke
    Member since 2021 · 2 posts · 0 votes
    4y

    Do you know what company the solar is through ? Used to work for solarcity /vivint and sunrun 

    0Reply
  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    @Don Zhang

    Occam's Razor - The simplest explanation is preferable to one that is more complex. Don't overthink it and just bake the solar lease into the rent. Explain in the listing description that utilities are included. People typically search in round/bracketed numbers so something like $2500 may be a cutoff point of a search and then $3000 might be the next cutoff. If someone can afford $2500 but not $2600, you don't want to rent to someone who is that maxed out financially anyways.

    Put a quality product on the market at a decent price and you should get a renter in there.

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