Real Estate Professional · Morristown, New Jersery · Member since 2017 · 22 posts · 2 votes
I'm trying to run some numbers on a rental property but I'm getting stuck on the utility (water) bill. Do I assume a number?? Or do I ask the listing agent or contact the utility company for that area ?? Or contact the owner??
I request copies of all utility bills from the owner as part of my due diligence. I also submit a FOIA (Freedom of Information Request) to the City for code violations, liens, judgments, last 12 months of water billing, building permits issued, refuse service, etc. I want to gather as much information as possible. The FOIA is free and requires a response within 7 days. I also verify the tax bill with the county. Leave no stone unturned.
Don't guess at utility bills they can make a good deal into a bad deal.
Investor · Redlands, CA · Member since 2013 · 177 posts · 76 votes
9y
I had this same question, glad you asked it.
I just asked in the local market forum for some ballpark guesses. I wonder if calling the utility will get us anywhere? Look forward to seeing what everyone says.
Hollidaysburg, PA · Member since 2015 · 327 posts · 350 votes
9y
Hi Samari, what my wife and I do is simply contact the utility company and ask them for a monthly average on a property we are interested in purchasing. If they have any questions, we just express to them exactly what our intent is, and that we need monthly averages for the year to run numbers. We aren't necessarily concerned with exact, but averages to help us make a sound judgement. Oh, and be prepared for the push button game, just to get someone on the line. I hope this helps and good luck.
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Samari Robinson For any utility just contact the provider directly. Some will share info, some won't. Some will share but only if asked the right way. For example, our local natural gas company will provide therm consumption but not the dollar amount charged for each bill. They will, oddly, tell you the cost per term for that billing cycle and allow you to compute your own total cost.
If a utility provider flat out refuses to share info you'll need to have the authorized account holder (typically the seller) make the inquiry on your behalf and then share that info with you which is a pretty common request.
I request copies of all utility bills from the owner as part of my due diligence. I also submit a FOIA (Freedom of Information Request) to the City for code violations, liens, judgments, last 12 months of water billing, building permits issued, refuse service, etc. I want to gather as much information as possible. The FOIA is free and requires a response within 7 days. I also verify the tax bill with the county. Leave no stone unturned.
Don't guess at utility bills they can make a good deal into a bad deal.
Real Estate Professional · Morristown, New Jersery · Member since 2017 · 22 posts · 2 votes
9y
@Ryan Murdock That's what I was thinking about doing. If the deal is worth further analysis I'll call the utility companies to confirm any numbers. Thanks again!!
I request copies of all utility bills from the owner as part of my due diligence. I also submit a FOIA (Freedom of Information Request) to the City for code violations, liens, judgments, last 12 months of water billing, building permits issued, refuse service, etc. I want to gather as much information as possible. The FOIA is free and requires a response within 7 days. I also verify the tax bill with the county. Leave no stone unturned.
Don't guess at utility bills they can make a good deal into a bad deal.