I’m wondering who of you all have or currently are operating an apartment building that use to be a motel?
I’m in the process of trying to buy such a property and just curious what to look out for.
How have you reduced utilities ? Tenants are month to month and utilities are on the owner
Any other thoughts would be much appreciated
I have one. It was originally 18 motel rooms and a manager's apartment. It was converted to 11 apartments with most of them being a living space, kitchen, and bathroom. I just include utilities with the rent. It's important to understand what actual usage is and then ensure it's covered by the tenants. For example, my utility bill is $800 a month so I add $80 to each unit which gives me 10% more than actual usage to cover increased use.
It will help if you can get the utilities on a budget so you are charged the same amount every month.