Tenants & Utilities

[Kevin Deady]

It seems like a no-brainer to have your tenants pay for the utilities, right?

Why would you (as a landlord) ever consider picking up the bill?

[Nathan Gesner]

There are a few good reasons:

1. When you have multiple units but single meters.

2. The utility company requires a large deposit. This could be difficult for tenants to afford because they have to come up with your deposit, first month rent, moving expenses, etc. Another $400 deposit can be enough to prevent someone from moving in.

3. If you are renting for a shorter term, like month-to-month, then it may make sense to keep utilities in your name and include them in rent or bill them through rather than deal with the hassle of setting up new accounts every time tenants change.