Flipper/Rehabber · Riverdale, NY · Member since 2017 · 112 posts · 27 votes
2018 is off to a great start!!
I have obtained my first rental and I am on the verge of meeting potential tenants for renting.
What utilities do you usually have tenants pay in a SFH?
My house has central AC and heat, no gas stove.
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
8y
All of them, including the water that comes in my name and I bill them for. Tenants who do not pay their own utilities may not worry about usage - would you?
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
8y
All of them, including the water that comes in my name and I bill them for. Tenants who do not pay their own utilities may not worry about usage - would you?
Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
8y
Our tenants pay everything except for taxes. They take care of yard and snow, electric, gas, cable, and water. The bills are transferred in their name but we are listed as the landlords so that we will be notified if they don’t pay so that the lights, water or heat will not be shut off. It has never come to that but I feel more secure knowing that the companies will inform us if needed.
Flipper/Rehabber · Riverdale, NY · Member since 2017 · 112 posts · 27 votes
8y
@Ola Dantis Thank you for the advice. Someone called offering to pay up front. I will only take certified check or wire and still run a background check.
While having the tenants pay all utilities are always ideal, keep in mind that it also depends on the areas. If the local area has a common utility in every house and you change yours, they might just decide to go nearby.
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
8y
@April Molina Hey April, I'd definitely say this is a little iffy, even if the credit check and background comes clean, you want to be on the safe side.
There are a plenty of renters out there though you'll get one soon :)
Charleston, SC · Member since 2017 · 84 posts · 46 votes
8y
I have tenants put all utilities (water gas electric) in their name and pay them. I also bill back sewer which they can’t put in their name but I just take a picture of the quarterly bill I receive ($81/quarter) and have them add it to rent for that next check. I have thought about adding lawn care and roof blowing to rent but haven’t yet pulled the trigger...
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
8y
Most of my rentals are single family homes. The tenants supply their own appliances, take care of the grass/snow, pay their own gas, electric, water, sewer, and trash.
Traverse City, MI · Member since 2016 · 2 posts · 1 vote
8y
I always include garbage pickup in the rent. I want the garbage to always disappear, and if I'm paying there is a better chance of that happening. One garage filled with rotting trash will convince you of this logic.
The management company I work for puts everything on the tenants: Water, Electric, Gas, Snow, Lawn, Water Softener Salt (if applicable) and Furnace Filters.
Some people we work with like to do the Salt/Furnace Filters so they have one excuse to go in the house every 3-6 months.
In my area electric and gas will follow the tenant if they are not paid and not come back to the owner. Water will revert back to the owner on their taxes if the tenants leaves a balance. You of course can go after them but depending on the cost of going after them it might not make sense.
Around here with water, you can have the water utility alert you of unpaid bills after a certain amount of time and abnormally high usage. I would do this whether you include it or not. Then you can approach the tenants before the bill gets too big for them to handle. If your paying it, it will also help you avoid surprise large bills. I have a house hack duplex and I pay water for the upstairs unit. Their running toilet, which they thought was not big deal, resulted in a $400 water bill for me. Ended up being a $5 fix and if I had it set up with the water utility right it would of saved me a lot! It could also save a tenant a lot if they're paying and not put a strain on the rent they need to pay you.
Rental Property Investor · Champaign, IL · Member since 2015 · 146 posts · 80 votes
8y
Mine pay for everything themselves, except for sewer. Champaign requires that be paid by the property owner. You might want to check with your utility providers to see if there are any special issues like that. At least here, that information is printed right on the bill.
Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
8y
Just be aware that, in Michigan, the water bill will stay with the property--regardless of who is responsible for paying for the water per the lease or per the water department. So, if the tenant leaves a big water bill, you will be stuck with it. Water departments will not turn the water back on until the bill is paid. (Even if you file a water affidavit which prevents the water utility from putting a lien on your property--they will still hold you up for the payment of the past due bill.) Some water departments are slow to shut off water for past due payments so bills can get rather pricey, e.g. $750 or more. Just be prepared!