who should pay for utilities?

Question

hello my name is rigo, I'm new to bigger pockets and had a question. I'm currently looking at a duplex one side has tenants the current land lord pays for the utilities water/sewer & garbage. if i do acquire the property is it recommended for me to continue paying for these utilities or can i tell them to do so?

by the way this would be my fist property.

Matthew Paul · Answer

When you rent a car , you have to buy the gas .  If you include utilities , I would be real cool in the summer and toasty warm in the winter . I may even let my friends come over and use the washer and dryer .

Rigoberto Orejel · Answer

thanks, i needed to check if that would be a problem, since they are used to just paying for the unit and not utilities. I'm sure they are not gonna like it, but i don't want to worry about them running up the bills.

Mark Jones · Answer

@Rigoberto Orejel

Keep in mind that if there is a lease in place you have to follow it until it expires. Then you can do what you want. Most leases will state who is responsible for each utility.

Gail K. · Answer

Fees for garbage pickup may be included in the owners property taxes; thus, you may be paying for this.

In addition, one reason the current landlord may be paying the water/sewer charges on this duplex is that there may be only one meter for both sides (not unusual) and it may be cost prohibitive to run a second meter.    Best to check this out prior to purchasing the property.

Gail

Rigoberto Orejel · Answer

Awesome, thanks guys

Thomas S. · Answer

Ideally a landlord does not want any utilities in their name. Tenants are generally irresponsible for anything they do not pay for. It is not uncommon for tenants to run up utility bills to punish their landlord.

Have your tenant put utilities in their name and make them prove it before you hand over the keys. If utilities are not metered by unit do not invest unless the cost to separately meter is built into the purchase price.

When analysing a purchase you only have choices until you own it.

who should pay for utilities?

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