Multi for sale - Owner now pays all utilities - How easy to put utilities back on tenants?

[Jon Huber]

Hello everyone,

   So, I have found a house worth pursuing. B- neighborhood. C multi-family. Cash flows very nicely. The draw back is that the owner currently pays for all utilities (electric, gas, heat, water, etc). Now the property still cash flows even with paying for the utilities, however, this is due to the rent price being indicative of "all-inclusive". My question is: Has anyone had this situation, and had a successful transition from tenants who pay no utilities to all utilities?  I understand I would have to draft a new lease.

Please note: I am not concerned with the price of metering the units and/or adding heating units, etc. I am aware of the challenges and costs of that. I am asking only about transitioning the tenants off of the "all inclusive" to paying their own way moving forward.