I may have broken the cardinal rule by purchasing a multifamily mixed use commercial/residential property in Michigan that has shared utilities AND electric heat. The two commercial units share one meter, and the three residential apartments share another meter, and electric bills are astronomical. I looked into sub metering through the electric company, but the electrical cost associated was WAY too high for the amount i had budgeted for renovations. My concern is that if i just jack up rents and say utilities included, the sticker price will scare people away. What are my other options? RUBS?
@Ken Martin As you mentioned yourself, look into RUBS. Alternatively, consider bumping up rents. See what's more common for the area.
What are RUBS? BP didn't have a little hint button on that one :)
RUBS is a Ration Utility billing system that allocates 100% of the property's utility bill to the residents based on an occupant factor, square footage or a combination of both, less a predetermined percentage of a common area allowance.
To put it in easy words, you still pay, but are able to bill back to tenants.