Property Manager · Philadelphia and Drexel Hill, PA · Member since 2018 · 23 posts · 5 votes
I am buying a duplex this summer for the purpose of a house hack. I will live in one unit and rent out the other. I am not sure if I should have my tenants pay all of their own utilities directly, or if I should pay the utilities and then have the tenants pay me? I've also heard the house's mechanicals are a factor in this, but I am not sure how.
Similarly, should they be paying for lawn care and snow removal? What works for all of you?
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
Congrats on the house hack plan!
If the utilities are metered separately, i recommend you have the tenants put the utilities in their name and have the tenant pay them directly. In winter time, you might check the utility company that powers the furnace once in a while to be sure there is heat so that your pipes don't freeze.
Some jurisdictions require you to be responsible for the bills if the tenant does not pay. For example, in my state, I get a letter reminding me that I'm responsible for the sewer bill if the tenant does not pay even though it is in the tenants name.
I'm not familiar with the house's mechanicals being a factor? Maybe this means that if there is one "boiler" or one water meter, then only one bill will come and it will be in the owner's name in which case you'll need to decide up front if the cost is included in the rent or how the tenant is splitting it w/you.
Lawn care and snow removal are negotiable in my area. When I hacked in a duplex I took care of the lawn and snow on both sides myself. When I'm renting a property but not hacking, I've had different arrangements at different times. Some applicants own lawnmowers and snowblowers but some do not. At some properties I have lawn service contracts for fertilizer and weed spray but at others I do it myself and at one I did nothing for most years.
Finally, I recommend putting as many utilities in the tenant's names as possible. My process for new tenants is that they get the keys on the day that I get the first month's rent, the deposit(s), the signed lease (which I counter sign and give them back a copy of), - and proof from the utility companies that the utilities are in their name. If the utilities are not in their name(s), they don't get to move in.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
Congrats on the house hack plan!
If the utilities are metered separately, i recommend you have the tenants put the utilities in their name and have the tenant pay them directly. In winter time, you might check the utility company that powers the furnace once in a while to be sure there is heat so that your pipes don't freeze.
Some jurisdictions require you to be responsible for the bills if the tenant does not pay. For example, in my state, I get a letter reminding me that I'm responsible for the sewer bill if the tenant does not pay even though it is in the tenants name.
I'm not familiar with the house's mechanicals being a factor? Maybe this means that if there is one "boiler" or one water meter, then only one bill will come and it will be in the owner's name in which case you'll need to decide up front if the cost is included in the rent or how the tenant is splitting it w/you.
Lawn care and snow removal are negotiable in my area. When I hacked in a duplex I took care of the lawn and snow on both sides myself. When I'm renting a property but not hacking, I've had different arrangements at different times. Some applicants own lawnmowers and snowblowers but some do not. At some properties I have lawn service contracts for fertilizer and weed spray but at others I do it myself and at one I did nothing for most years.
Finally, I recommend putting as many utilities in the tenant's names as possible. My process for new tenants is that they get the keys on the day that I get the first month's rent, the deposit(s), the signed lease (which I counter sign and give them back a copy of), - and proof from the utility companies that the utilities are in their name. If the utilities are not in their name(s), they don't get to move in.
Lender · Collingswood, NJ · Member since 2016 · 36 posts · 13 votes
7y
Tyler,
You should have the tenants put the electric and gas in their names. Water and sewer you should keep in your name as water and sewer service receivables are filed as liens against the property in Philly. Just factor those projected costs into your rent.
If you are living at the property, take care of the lawn and snow yourself if possible.