Multi-Family Shared Utilities

[Chad McClain]

Have a possible deal on a triplex. It is set up for shared utilities. How do I pass the cost of utilities on to the tenants?

Rental rates are competitive in the area so it may be hard to add into monthly rent. Can I bill the tenants monthly? How do I appropriately charge each tenant (by unit, # of beds or unit sqft)?

[Robert Herrera]

@Chad McClain I would just take the monthly amount, and divide it among the amount of rooms in the building. That would give you the amount per room, then multiply by rooms in the unit. Put it in the lease agreement and let your tenants know you how you decide on payment costs.