How to handle shared Washer/Dryer yet utilities assigned to different units

Question

I have two units separately metered and we are installing a shared washer and dryer. Logistically, the water and power for the dryer would come from the smaller one bedroom and the washer power would come from the 2-BR. How do I not make this fair yet not complicated? There is not "house" power or water metering. Part of me doesn't even want to mention the question of who is paying for the W/D utilities but I need a way of discussing this and making this fair given it's shared and usage could greatly vary. And what if the 1-BR unit doesn't even do much/any laundry yet is assigned most of the utilities? Thanks for any guidance!

Brandi K. · Answer

@George Fleming Better make sure it's legal to do that. In some places if utilities are not split you can not have them in tenants name. You are able to charge them for utilities though.

George Fleming · Answer

I really appreciate each of you taking the time to help me with your insightful input. Very helpful. I just had a brainstorm perhaps based on all of this: I have the water and electricity for the W/D all come from Tenant A. Tenant B has the option to enjoy W/D for a set, flat monthly fee. (I will research what the likely cost will be and will add in some extra for Tenant A to make it a positive for them). They sign up for it and pay for it for the upcoming 6-12 months to avoid Tenant B dragging their feet with paying Tenant A. This way, Tenant A gets a little financial "help" beyond their actual expenses and for Tenant B, it's a total choice to take advantage of a W/D or not. Am I missing anything?

Dan H. · Answer

I have a laundry room that is exactly the scenario that you describe except the water is already split across the 2 units.  Not sure if the washer and dryer you are supplying are coin operated or free, but mine are coin operated

Tenants pay for the utilities and it has been zero issue because I do not allow it to be an issue.  If they are not happy, they can leave at the end of the lease.   This is pretty much my response for any complaint about anything that was well stated in the lease and the tenant has agreed to.   If the tenant does not like it, they should have rented elsewhere; not complain about it after they agreed to it.

The problem will be no larger than you allow it to be.

Good luck

Adam Bartomeo · Answer

We have dealt with this before and it can be a nightmare. It is best to run a new electrical line to the unit that has the water and only allow that unit to use the W&D.

Arvand Sabetian · Answer

This can complicate things unless you're willing to add another electrical line as @Adam Bartomeo stated. It's something that'll be a one-time cost and set you up for the future.Unless you get tenants to agree to split utility and water bills separately (50/50), this can get messy, there's not many options. What if one tenant is late or doesn't pay their amount? You've now become a mediator between them.I assume you prefer not to have the utilities and water accounts under your name. If you decide to go this route, you could inform the tenants that they will be responsible for a separate monthly utilities charge in addition to their rent. The utility and water bills would be calculated each month (by you) and evenly split between them. This of course, would need to be defined in their lease agreements and would also require more work collecting those payments. Again, what if one of them is late or doesn't pay?

James Mc Ree · Answer

A few ideas:

I would start by asking the tenants if they really care about the utility costs since Landlord is supplying the appliances. They may just agree to cover them, especially if Landlord offers to eat the appliance costs if they cover the utilities.

If that doesn't work and it is an issue for the tenants, I wouldn't do it. However, if you want to press on, here are a couple of ideas:

Install a coin-op washer and dryer and use the revenue to reimburse the tenants. Calculate costs with inline meters on the electric and water. You will need to read them and do some math, but this would allow you to calculate costs and evenly allocate them if they go 50/50. You can do this without a coin-op feature, but then you have to bill the tenants for small amounts which is just one more thing to have to track and follow-up on. You won't know who used more or less, so any complaints about volume are more issues. You can use a card reader on the coin-op feature to address that, but you are into micro-issues at that point that I wouldn't want to deal with.

A proposal: Tenants, installing separately metered water and electric lines that I pay for, then bill you for, will cost me $5,000 (or whatever). I would then pass that on to you in a rent increase of $100/month more/less. I'd rather not do that. Instead, can you just cover the utilities or go to the laundromat. This is just a heavier version of the first idea.

Matthew Paul · Answer

An electric dryer will run up the bill of that unit quickly , where a washing machine wont nearly as much .

George Fleming · Answer

Thank you for that AND the W/D are definitely going to be shared by two units so that is not an option here.

How to handle shared Washer/Dryer yet utilities assigned to different units

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