Paying Duplex Utilities
9 Replies
Geren Knight III
Investor from Cumberland, MD
posted 12 months ago
I am looking at my first duplex that was converted into a SFH. I plan to convert it back to a duplex; however, all of the utilities are set up for a SFH now. Should I have the utility companies add another line or should I pay the utilities for the tenants? Also, if I pay the utilities, do I add that charge to the rent? How is this typically handled?
Nicky Reader
Investor from Columbus, OH
replied 12 months ago
FYI my city wont submeter water in duplexes, so our options are to use a private submetering company or split the bill using a system like "ratio unit billing system" aka RUBS which is what I do, but its a nuisance.
Brittany R.
Investor from New York
replied 12 months ago
I would separate the gas and electric...so your tenants can pay it in themselves. My tenants do that now.
I'm not sure about water. In my state, the landlord has to pay the water bill.
Geren Knight III
Investor from Cumberland, MD
replied 12 months ago
@Nicky Reader thank you! I will look into the splitting for the water and check with the electric and gas companies on submetering. I Was thinking that was going to me my approach; however, I wasn’t sure what was typically done.
Geren Knight III
Investor from Cumberland, MD
replied 12 months ago
@Brittany R. thank you for responding! I want the tenants to be responsible for the utilities, not me. I will check the state landlord laws on how to charge for water.
Brittany R.
Investor from New York
replied 12 months ago
Great. Let us know how it goes!
Marc Winter
Real Estate Broker from Scranton, PA
replied 12 months ago
Here's why I will NEVER pay a tenant's utilities;
First starting out years ago I had a large 3 fam house that was fully rented. I paid the heat. During the winter, we wore sweats in our own home and kept an eye on the thermostat.
While collecting rent one February, in one apartment the tenant answered the door in shorts and a t-shirt. I went into the apartment and saw a window open. (Note: the thermostat was in a locked box set at 69 degrees in a different apartment.)
I asked him why the window was open when it was 20 degrees outside. "It got too hot in here so we opened the window."
Brittany R.
Investor from New York
replied 12 months ago
@Marc Winter - lol, thanks for sharing! 😆
E.S. Burrell
Rental Property Investor from Michigan
replied 12 months ago
I agree with @Marc Winter .
My tenants are responsible for all utilities including pest control, lawn, and snow removal. I don’t want to get stuck paying a high utility bill due to carelessness.
Scott P.
Rental Property Investor from Indiana...mostly
replied 12 months ago
If the utility companies will split it back up I'd do that for sure.