Utilities in a Duplex

[Patrick Winningham]

I have searched the old forums and haven't found an answer yet...

First - I know it is ideal to have all utilities in the tenants name/they pay.

Now the 'what if'... If I have a duplex with utilities not split (and I don't want to pay to have them split) what is the best way to deal with this?

I don't want to pay them. Is it reasonable to keep the utilities in my name and require the tenants to pay half?

Please let me know how you address this situation (if you have had to...)

[Brandon Kamm]

We deAl with this all the time. Keep the bill in your name and you pay it. When you move the tenants in a part of the lease includes an addendum that states you will get the bill and will in turn send them one. When the bill comes make a copy and send them a bill for their amount.

Review the building and break it up based on size, etc. Water is usually 50/50, gas and electric can be based on sq. Feet. One may get 60% the other 40%. Just make sure all tenants are aware of the plan before signing a prt of the lease and if they don't pay itncould be grounds for eviction.

We do have trouble collecting on low income buildings with this plan but if your units are $500 a month and up generally you have no problems.

For tax reporting you have utility expense to write off but also utility income to claim. In a perfect world they offset