Estimate Utility Costs (water, sewer, garbage, etc) in KC?

Question

I am currently practicing deal analysis, using the rental property calculator tool. It takes me a while to analyze a deal and even then, I am not 100% confident that my numbers are right each time.

I'm trying to make my numbers as accurate as possible.

Where do you all search for estimating the costs of the following:

+water and sewer

+garbage

+gas and electric

I have been listening to many podcasts and webinars and I know the answer could be as easy as googling it, but I would like to know what other, experienced investors do to estimate these costs when analyzing a deal. Where do I look for these costs?

I am analyzing multifamily deals in Kansas City, MO.

Thanks!

Mike D'Arrigo · Answer

Nina, confirm that the water is metered separately too. Sometime electricity is but water isn't. To get costs, you can generally call the utility company and they can tell you what they have averaged.

Nina Granberry · Answer

Thank you @Steven May ! That is very helpful information. I am currently working on a deal in Belton, MO where all of the utilities are charged to the tenants. I hope that future multifamily properties I find in KCMO work out the same way. Thanks again!

Steven May · Answer

Hey Nina, not sure how to find exact costs but I can tell you:

-I have a property in East Plaza area, it’s a 1300 sq foot house built in 2009. It’s all electric. The cost varies month to month with temperatures but on average I would say the electric bill was about 90-150$/a month and water is typically 45-75$/ a month. Trash service is free. That is with 2-3 people living there.

-I have another property in Waldo (South KC). It’s a smaller and older house. 900 sq foot and about 100 years old. Once again the cost varies but on average electric is 30-75$/a month. Gas is 50-90$/ a month. And water is about 55-85$/ a month. Trash service is also free here. (Pretty sure trash service is free in all of Jackson County but don’t quote me on that)

Message me if I can assist you in anyway! With the multifamily space - if you can move utilities to the tenant to pay your NOI increases greatly = increase in Cap rate = increase in value. Goodluck!