San Jose, CA · Member since 2016 · 37 posts · 7 votes
Hi all,
I'm eyeing a 5 bedroom single family home that had its garage converted to 2 bedroom unit. It was done with a permit. What's a good plan, process or contract to split the cost of the utilities and mailing address between the tenants? I do not want to manage the utilities myself as a landlord.
Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
9y
@Tuan Tran Estimate usage, include that amount in the rent, and pay them yourself. Or submeter if you can. Or have a 2nd meter installed and split the service lines. Inevitably you'll find with splitting bills that the tenants will bicker to you about how its not fair because the other person left their light on all night or keeps the heat way up etc etc. If you have one tenant pay the other, expect many calls as well about not getting paid or not agreeing on the amount. If you take a little time, you can calculate out with a decent amount of accuracy the normal electric and gas usage you can expect and adjust your asking rent amount by such.
Or find 2 tenants who are family so they can pay the bill together.