Would You Give Up $15K/Year to Avoid Tenant Headaches? (High-End CT Rental Setup)

[John Corbo]

Curious how other investors would play this: I’m torn between maximizing income vs simplifying my life.

I own a higher-end home in CT with a fully separate in-law apartment (both units are on the luxury side).

 

The Setup

• In-law studio (~500 sq ft) rented for $1,500/month (utilities included)

• Private entrance + own washer/dryer, carport

• Electric heat only in the studio (no separate meter)

• Notable: electric bill increased ~$300/month during winter from usage

Main house:

• ~1,632 sq ft + ~800 sq ft finished basement, 2 car oversized garage 

• 3 bed / 2 bath

• Estimated rent: $3,500–$4,000/month

 

Option 1: Max Cash Flow

• Rent both separately ~$5,000–$5,500/month

Reality:

• I eat all utilities (and potential overuse) and outside maintenance 

• Managing 2 tenants

• Shared property dynamics

 

Option 2: Simplicity Play

• Rent entire property to one tenant ~$3,800–$4,200/month

• Tenant pays all utilities

Upside:

• One tenant

• No utility exposure

• Cleaner, lower-friction setup

The Real Question

Would you take an extra $10-12K/year knowing:

• Utilities are uncontrolled (already saw +$300/mo spike from one unit)

• More management + potential tenant friction

Or is this an easy call to simplify and lock in lower-risk income?

Looking for Input

• Anyone regret running split units with shared utilities?

• Best way you’ve controlled usage without a separate meter?

• Where do you personally draw the line between cash flow vs sanity?

Happy to share full numbers if helpful.

Interested to hear how others would approach this - feels like one of those “looks great on paper vs real life” decisions.

[Caleb Brown]

I'd lean on having them separate. I think it'll be easier to find tenants. More cashflow. It's basically like a duplex. Can you do a billback system for the utilities or charge a flat rate?  If management is a pain you could look at hiring a solid PM.