Water Bills

[Brad T.]

Hello Everyone,

I am currently in the process of acquiring rental #4 and have been wondering about how everyone is handling water bills in single family homes. Do you pay the bill or does your tenant? If you do, do you include it in the rent or have them pay separately?

In my other rentals right now I pay the water bill, since I believe the city can put a lien on your house if the bill isn't paid.

Thanks,

Brad

[Chris Adams]

Unless its a lienable bill from the city, its up to the tenant. You don't want to be responsible for any utilities because in the event of a problem tenant they can put you in the poor house.

If the city can lien your property for the utility ( sewer for me) then you want to have it calculated into your holding cost of the property. My sewer bill is a fixed cost.

If it is not a fixed cost than you should have the tenant reimburse your for an amount over X, include X into the holding cost of the property.

Just make sure this is clearly stated in your lease.