Third Party Utility Billing Companies

[Marissa Carroll]

Hey BP Community! 

I'm trying to get some things sorted out for a first buy and hold property. It's a duplex and I will be living in one unit, so only one will be rented. I plan to have the tenant pay for all utilities. I've read a lot of stories about tenants not paying their water or whatever bill, leaving, and then the utility comes after the landlord. I've been thinking a third party billing agency for water/trash/sewer might provide some protection. 

Does anyone use one of these for a single unit? Thoughts or recommendations? For reference, the duplex is in Kansas City, KS and is seperately metered. I think there is some differences in the way utilities are billed here (Unified Govenrment slaps a big ol fee on top of your bills I'm told), so I don't know if that changes anything. 

Thanks everyone!

[Lee Ripma]

I would think that the trash bill would be for both, same with water bill. If there is a separate meter for electrical then you have them transfer service to their name, same for gas. If you want them to split water bill or trash bill (or other upkeep with you) you can add a fee for this onto their rent or you can bill them for it. I don't think it's going to be worth getting anyone else involved with just one unit. If you are worried about not having them pay for their fair share I suggest 1) you screen them carefully, 2) you setup automatic online bill pay using tenantcloud. It is 9/mo but they will love being able to pay online and you can add fees each month. You can set it so that the rent and all fees have to be paid in full monthly. Just make sure you disclose to them everything they are going to be splitting with you and any fees ahead of time!