Which utilities do landlords pay in North Carolina?

Question

Researching investing in rental property in NC, Triangle area.

I'm looking for a duplex. Maybe a triplex or quad.

When I'm estimating costs, which utilities should I factor in?

Electricity. Out here in CA, tenants usually pay their own electric bill. Same in NC?

Water.Usually the tenant here. Same in NC?

Sewer. Usually the tenant here. Same in NC?

Trash & recycling pickup. Landlord often pays that herer, though it varies. What's the story in NC?

How much do these bills typically run for a 2-bedroom unit if I have to pay them?

Dawn Brenengen · Answer

@Ethan M. Jared is correct that the tenant will pay for anything that is separately metered. Also, trash, water and sewer are all part of the same bill in Raleigh, NC and in most of the surrounding areas if you are inside city limits.

You might end up paying water in a small multifamily.  Water can vary depending on use, of course, but I would estimate about $125.  My family of four pays about $100, but we water our lawns, etc.  In the winter, it's more like $70.

I believe you can call the utility company to get an average of the utilities for a particular address.

Steve Babiak · Answer

The automatic switchover can be a good thing, except when the utilities are switched off for tenant non-payment - that is probably a predecessor to non-payment of rent, and then eviction but now the landlord is stuck paying utilities.

In my state, utility shut off seems to be restricted during the winter - in April the shut offs resume.

Lynn McGeein · Answer

Just wanted to add that gas and water both have the added bonus of being able to establish a landlord account where you set it up to automatically revert to you at tenant's turnover, saving both the hassle and the new hook-up fees in between tenants.  There is paperwork involved, but it works very well.  The only issue is that the electric company does not follow suit, saying you must have 10 properties minimum at the same location for them to allow you the landlord account there and there reason is it is the law there.  So not sure why gas and water can do it and electric can't.    And unlike most areas I've dealt with, it's wonderful that the tenant is responsible for any charges they run up but don't pay, not the owner of the property.    At least in Raleigh.

Chris Martin · Answer

If the tenant established the service, the landlord is not obligated for the (defaulted) tenant's service usage. The service providers (water, electric, etc.) generally establish a deposit prior to service. For new tenants with no payment history, the utilities may establish a large deposit. This is a potential opportunity for some.

For landlords offering 'product differentiators' like short term leases (or 'semester' leases if ITB Raleigh), some of their leases provide landlord paid utilities, with a cap (usually a $ amount) on metered usage. Tenants exceeding their cap are billed the difference.  The keys is to make sure the terms are spelled out in the lease. The utility obligation is this scenario is part of the lease, just like monthly rent.

Dawn Brenengen · Answer

@Steve Babiak  haha....yes, that's true.  The tenant is SUPPOSED to pay.  However, I'm pretty sure that Raleigh does not hold property owners responsible for tenant's water bills.  I won't swear to it, but I have never heard of it happening here.

Steve Babiak · Answer

Rather than stating "will pay" in the above quote, it's probably more accurate to word it as "will be obligated to pay" ;) Tenants sometimes choose not to pay utilities even when that is their obligation under the lease.  And because of that, you always have to be careful with utilities that end up being a lien on the property, because when the tenant doesn't pay the landlord gets stuck with paying (or being liened and then paying off the lien).

Derek B. · Answer

@Ethan M.  good answers so far. One thing I would add is that tenants pay their own landscaping in an sfr here. That may be different than what you see in cali. Landlord will usually pay in multi, though i have seen some side by side duplexes where tenants pay/cut their own half.

Ethan M. · Answer

Ok, great. Thanks for the info!

Jared Rogers · Answer

@Ethan M. the landlord will pay anything that is not individually metered. Electricity always is individually metered if the property is a duplex by code. Water/Sewer is on separate meters sometimes. No way to really estimate cost since water/sewer varies by municipality. When you have a deal, get the prior bills and call the local water company to compare.

Which utilities do landlords pay in North Carolina?

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