Rental Property Investor · Reinholds, PA · Member since 2019 · 34 posts · 16 votes
We are looking at a 4plex in a strong C area. Our realtor just got us the utility bill info and I’m taken aback at the expenses for the water/sewer. The city quarterly bill has broken down the expenses into separate water and sewer costs, and the sewer is hovering around 400% more than the water.
For example,
2018 water -
Flat rate of $709.60
Excess usage charge of $1,040.76
Total of $1,750.36
2018 Sewer -
Flat rate of $272
Excess usage charge of $4,367.20
Total of $4,639.20
Anyone have any experience with something similar, or the ability to point me in the right direction?
Rental Property Investor · Stratford, CT · Member since 2019 · 154 posts · 115 votes
6y
are you sure you are not purchasing a car wash? :)
jokes aside, it does seem extreme and I would probably follow up with the agent/seller asking an explanation why the extremely high excess charges. A good realtor should be all over this before you do. Not questioning him/her, but I know mine would have the answer before she even presented the numbers to me. Definitely worth pursuing as the numbers look insane. Something fishy is definitely going on.
Architect · Providence, RI · Member since 2016 · 257 posts · 195 votes
6y
comes out to about $133/unit/month. In my area, that's high, but not too high, maybe double what I'd expect. Go talk to the water/sewer departments. Maybe you have a leak, or why are the tenants using so much? Hard to say why it's high, since we don't know where you are located. Different areas have different costs on water/sewer.
Rental Property Investor · Stratford, CT · Member since 2019 · 154 posts · 115 votes
6y
are you sure you are not purchasing a car wash? :)
jokes aside, it does seem extreme and I would probably follow up with the agent/seller asking an explanation why the extremely high excess charges. A good realtor should be all over this before you do. Not questioning him/her, but I know mine would have the answer before she even presented the numbers to me. Definitely worth pursuing as the numbers look insane. Something fishy is definitely going on.
Investor · Indianapolis, IN · Member since 2017 · 145 posts · 158 votes
6y
I know people who've had the opposite situation: they have two separately metered waterlines. One feeds outdoor hose bibbs and sprinkler systems, and they are not billed for sewage for this line. Hard to say how a leak could cause what you describe. Maybe a glitch in the city's billing. It does happen.