Creating a third unit in the attic -- a debate

[Christian Carson]

I recently bought a second duplex on the same street as a triplex I own. They are functionally the same construction--1920s-built, up-down 2br apartments of about 1000 square feet each with front porches, and a finished third floor attic of about 600 square feet.

My first triplex came with a separately metered third-floor apartment which rents at $350. Apartments one and two are worth $700 apiece, rounding the rents out to be $1750/month.

The second duplex has been finished with plaster, a separate room for the bath. Water and drain pipes have already been plumbed for the kitchenette, so all that needs to be done is the installation of cabinets, sink, toilet, vanity.

The way I see it, I have a choice:

1. Finish the third floor bathroom and rent it as part of the second floor apartment. Extra rent: $200.

2. Finish the third floor as a studio apartment and rent separately. Extra rent. $350. Extra cost: $1000 or so.

THE PROBLEM:

The first and second floor are separately metered for gas and electric. I'm told that the city is unlikely to approve the installation of a separate meter, so any third-floor apartment would have to share electric with the second floor. Splitting the utility bill doesn't seem like something I'd like to deal with every month.

What do you all think?