Who pays trash

Question

They changed trash billing in my area last fall to be prepaid a flat rate yearly and it is added to your property tax bill.

My leasing agent has been leasing in the area about two years, and asked how I wanted to handle this, and suggested that most landlords he works with in the area absorb the cost due to the yearly billing, since surrounding areas have had this type of billing for a while.

The house is being rented such that the tenant pays all utilities. Should I take the leasing agent's suggestion and absorb the cost, or pass on a monthly rate to my tenants? The cost is around $175/year.

Amie D. · Answer

I am already pretty much at the top end of the rent I could get for that house. I'd rather just advertise it as what the rent is, and that they pay utilities. If they are coming into it knowing that they are responsible for all utilities, then it is what it is.

However, if the other landlords pay it, then maybe I should consider paying it. The house is on the border of Cincinnati and Northern Kentucky on the Kentucky side (5 min from downtown Cincy). In Cincinnati the owners don't pay the trash a year at a time, and so there I know the renters pay for the trash. I am not as familiar in Northern KY.

It is not that I don't trust my leasing agent, but I can tell he is not that experienced in running investment properties outside of just renting them (he is a real estate agent but more deals in SF properties, not investments, doesn't do the management part and doesn't own any on his own), and - he seems to be more on the renter's "side" if there is such a thing in the negotiations so far (this is the first house I have had him rent for me). I went through the ads online for other properties but couldn't find any information if the other landlords around do or do not in fact charge for that.

It's not a huge amount of money, still, the place isn't a high rent area, either.

Dawn Anastasi · Answer

Can't you just raise the rent $15/month and pay the bill yourself?

Jon Holdman · Answer

On one of my rentals you have to hire a private trash company.  That's actually very common here, except in the city/county of Denver.  I have the tenants pay.  I pay (quarterly), but they pay me a set amount every month.  I have them pay a fixed amount for water and trash, then I pay both of these bills.  The amount they pay works out to a bit less than what these actually cost.  But this way I don't have to deal with water liens nor not having trash service between tenants.

That said, this depends on your area.   If this is commonly paid by landlords in your area, then you may be pricing yourself above others if you charge extra.