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Updated almost 5 years ago on . Most recent reply

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Michelle Moss
  • highland heights, OH
2
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27
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Separating water in a duplex Cleveland ohio

Michelle Moss
  • highland heights, OH
Posted

I own a duplex in Cleveland and want to install a sub meter. Does anyone out there know a plumber/ Handiman who could do the work ? Thank you!! 

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Timothy Murphy III
  • Real Estate Broker
  • Cleveland, OH
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Timothy Murphy III
  • Real Estate Broker
  • Cleveland, OH
Replied

I typically advise investors against billing tenants for the water. The concept is good as the tenants, in theory, will be less wasteful of water if they pay for the usage themselves. In practice, it often fails. 1) You need to submeter multifamily properties at your own cost up front. 2) You're now collecting two separate bills instead of just the rent. If you're in a B area this may not be an issue but in lower rent districts this can make your rent collection more of a headache. The bills come out quarterly so many tenants do not properly budget for the bill. 3) There's also complications after a move out, depending on the timing. You may not know the final water and sewer bill for up to 3 months after the tenant moves out. Landlords, however, must provide the tenant with an itemized list of deductions against security deposit and return the balance within 30 days of move out. 4) Even if you have the submetering company bill the tenants directly, it's not like an electric bill. If left unpaid, the bill will ultimately become a lien against the property. 5) It may complicate matters if you need to evict. City of Cleveland's Housing Court is actually very well ran, but I've some the occasional wacky ruling from some of the more tenant friendly magistrates. Almost all of your evictions will be over non-payment of rent. In almost every such case, it's been because there's lots of unusual facts and circumstances around the payments. Keep them simple so you can evict smoothly if and when you need to.

I've collected water and sewer bills separately in the past but I don't any longer. It's just not worth it. Build water / sewer costs into the rent to the extent possible and plan for the expense in your models.

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