How do I include a legal clause on split utilities?

Question

We have a single family home with two levels and will rent out to two tenants. Gas electricity and water are all one meter. Utilities will be under our name and we will bill tenants. Lower level is 950sqft and upper level is 575sqft. The split will be 60% for lower and 40% for upper. How can we legally include a clause into the rental contract to bill both tenants? Any recommendations for legal terminology we should be using is greatly appreciated!

Patrick Liska · Answer

Casity,

Both Account Closed are right on this one. you can have it in writing if both agree to the split based on square footage of the rentals and it could also be trouble down the line with each new tenant. I would see what it would cost to install separate meters and go from there, do the split if it costs to much. But here is my question, you say it's a single family home, are you sure that zoning allows for two family home there, i would check that first. just because it can be, does not mean you have the legal right to do it.

Jay Hinrichs · Answer

Account Closed  again John your making a mountain out of a mole hill... your posting that people are going to end up in front of a judge is just not helpful to anyone.. and it makes you look silly frankly.

Jay Hinrichs · Answer

Account Closed  there ya go tenants are not educated.. end of discussion.

Tenants and landlords can create any type of arrangement they want..

its common to have flat fee's for utls.. or this person could include the utls in the rent and not charge them down to the penny.

my point is you scare people unnecessarily when your posts almost always include a trip in front of the judge.. when in fact unless your evicting someone you rarely if ever in your career will be in front of a trier of fact,,, unless your like me and have been around the block.. and even with all my experience of 42 years  doing well over 2k loans owning 500 plus SFR's etc etc I have been in front of the JUDGE  one time.... mediation 2 times.. arbitration 1 time.. and this includes a 20 year career of brokering well over 1000 transactions... NEVER in front of the judge on rental property issues...  Unless like I said we are evicting and I hire people to do that for me not worth my time.  and you simply are NOT going to get in front of a judge on a issue as mundane and small as this.

Jay Hinrichs · Answer

Account Closed  come on John  "face the judge" that's a little hyperbole..

Casity just disclose to the tenants and have them agree in writing up front.  if they dont' or you think its going to cause issues.. you may want to do what John states and meter them seperatly.

but this is NOT a little money this can be quite expensive actually...

Casity Kao · Answer

Thank for all your inputs! I will have to check with the city soon.

How do I include a legal clause on split utilities?

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