How to bill tenant for shared gas bill

Question

I just bought a property that has one gas bill for 3 units, and I want to split it equally and charge my tenants. What is the best way to actually bill my tenants monthly for the gas bill, and how do they pay me for it?

Paul De Luca · Answer

A simple, low hassle way to bill the tenants for the gas would be to (a) estimate the average monthly cost of gas and divide that amount by 3 & charge each tenant a flat utility fee (b) bake that average monthly cost of gas into each tenant's monthly rent (c) bill them as @John Warren stated although I think some tenants might complain if a particular monthly bill is higher than usual and they might point the finger at the other tenants.

John Warren · Answer

@David Pfeifer there isn't a simple way of doing this, so you are likely looking at sending a copy of the bill every month via email or text, along with a bill you can create for their amount. I would go by the percentage of the property they inhabit.

You definitely need to make sure you are following the existing leases here too. You want to make sure aren't violating any existing leases by doing this, and this would be a change to lease terms which requires proper notice too.

Drew Sygit · Answer

How this will actually work out depends on the tennats.

Class A & B tenants usually won't complain and will follow whatever reasonable division you put in their lease.

Class C & D tenants will start out okay, but then find every excuse they can to pay what they think is fair or not pay at all.

Garfield M. · Answer

https://www.supplyhouse.com/Ve...

Ned J. · Answer

I agree.... factor the average monthly cost into the actual rent (I would do all the calculations as best you can and then add another 10-15% as a buffer) . Monthly billing is going to be a huge PITA.... and if they dont pay the monthly bill you send, then what? Just more work than its worth.

Theresa Harris · Answer

What does the lease say and what is the gas used for?  If the units are similar size, you can divide it by three. Send them a copy of the monthly bill and have them add it to the rent payment.

How to bill tenant for shared gas bill

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