Buying into a property with current tenants paying NO utilities

[Afrothiti Manolis]

Hey BG,

In Chicago, I am buying a three flat. One of the tenant's contracts end 12/20. The other is month to month. Both are paying under market value. Those two units share a water heater and electricity and gas meter and have Central A/C. Neither are currently paying utilities. The third unit, where I will live doesn't share anything with the lower two units so I'm not worried about that one. 

In addition, the shared laundry dryer is not coined and is free to use AKA I will be paying that cost as well. Once the tenants contract expires 12/20 I will raise the rent. But with the other one MTM and with one meter and two units below sharing, what advice would you offer? I don't want to be end up stuck paying all units electricity and gas bill every month. 

Thank you! 

[Fikret Sivac]

@Afrothiti Manolis if you are adding a meter to separate the utilities have them place it where the tenants have access at all times. Chicago code requires that all tenants need to be able to access their electrical panel 24/7 unless a dedicated person (engineer/owner) lives there to provide them with that access. The same is true for the heating mechanical. If you are adding a meter to the building and separating them I would change the electrical panels if they are old. Read the chicago tenant rights to protect yourself. There are organizations out there teaching tenants about what the owner needs to do for them.