Including water bill to rent, how will tenants react?

Question

Good afternoon.

My tenants have been paying for their own separate gas and electricity bills, but when it comes to water, I'm the one that's paying (since there's only one meter for water). I've been thinking of increasing my tenants' rent so that it includes the water bill; however, they've been paying on time and I'm just not sure how they'll react once they see their rents go up: angry? understanding? How should I explain it to them?

Tim Miller · Answer

The horse may have already left the barn on this issue. First things, first. Does it state in your lease that Water is included in the rent? If so, there is nothing you can do. But even if it isn't in the lease, I wouldn't push that on existing tenants that pay on time.

Now, if they are on month to month. I would send them a 30 or 60 day notice that there is going to be a rent increase of $...... Don't even mention anything about covering the water bill as they may come back to say "Water is included in the rent". Just keep it simple, there's a rent increase. Good luck.

Eliott Elias · Answer

Are your rents lower than your comps? If you are raising rents to be the most expensive in the area then you have a problem. Otherwise if you are raising to fair market value your tenants have no choice but to pay

Theresa Harris · Answer

Tell them expenses have gone up and increase the rent.  The water should have already been factored into the rent price.

Nathan Gesner · Answer

What is the going rate for a comparable unit with water included? If your home is priced fairly, the tenants will accept the increase because that's cheaper than moving to another place that rents for the same price.

The grocery store owner doesn't wring his hands every time the price of hamburger goes up. Neither does the gas station that has more than doubled their prices in the past two years. Charge what your property is worth. If the price is fair, your tenants will accept it. If not, there are other tenants that will.

Including water bill to rent, how will tenants react?

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