Tenant Utilities Setup

5 Replies

Hey BP, I was wondering what benefits (if any) do Landlords get by keeping Utilities in their name and paying them every month but then having the tenants reimburse the Landlord?  

This pertains mainly to smaller buildings like a Duplex or Triplex but what are some recommendations on how to structure the Utility payments every month?

Hello @John Whitridge - look into Ration Utility Billing System (RUBS) and make sure it is supported by your state statutes. The most economical (and legal) way of billing utilities back to tenants. The only plus I can think of in keeping the utilities in the landlords name is not forgoing the cost to sub-meter, but RUBS takes care of that. 

usually its because the bill ends up as a lean if it goes unpaid, so the landlord keeps it in their name so they can make sure it gets paid every month.

You can list the unit as "utilities included" and simply raise the rent by X dollars to cover the utilities. That is also legal. If you do back billing then you have to bill the amount of the actual utility.

If the owner keeps the power bill(s) in their name, they can pass that cost to tenants (handful of methods for this), then install solar, and keep the savings margin as additional monthly income / NOI

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