Should landlords pay tenant water/sewage?

Question

I live in the Washington DC area and I am thinking about rolling water/sewer costs into the monthly rent. As the potential landlord of a small multifamily building, I will take on paying the water bill for the entire building. Before doing this, I want to get various perspectives on wether or not this is a feasible and/or responsible thing for me to do as a brand new landlord. Please help BP community!

Tracy Streich · Answer

Each municipality does it different.   Here the bill goes with the tenant not the home.   If it says with the property just make sure you get enough deposit if they leave you with a utility bill.  Many small MF are on a master meter for all units.   If that is the case just do a monthly charge back for the water/sewer.   It is much easier if it is just a set amount per unit.   $xx/per month on top of the rent

Tracy Streich · Answer

If there are individual meters for any utility tenant should always pay.  If there is a shared meter factor this into the rent or put a utility fee for the water on top of the rent

Marian Huish · Answer

Yes, landlords in DC should always pay the water/sewer as should that bill go unpaid (by tenants), it will become a lean on the property... unlike Electric & Gas which follow the tenant if unpaid.  Hope this helps!

Alana Bates · Answer

@Theresa Harris thank you for the tip! This  seems like I'd get the best of both worlds.

Theresa Harris · Answer

I agree with the others that if the units are not individually metered and the unpaid bill transfers to the property, you will want to pay it.  That does NOT mean the tenant isn't paying directly or indirectly.  I have two places where the water has to be billed to me, so I get the bill, pay it and send a copy to the tenant who then adds that amount to their rent.  I would always avoid having it as part of the rent (ie $800 rent including water) and have it separate ($750 plus water) as it makes the tenant accountable for usage.

Patricia Steiner · Answer

I don't recommend paying an expense that you haven't incurred or can control.  I have known tenants who have invited all of their friends bring their laundry because the "water is free."  And, during the eviction moratorium, you cannot evict for non-payment of rent but you can for non-payment of utilities.  Make checking with the water service as part of your quarterly inspection of the property - and deal with any delinquency early on.  And, you can always offset the security deposit for non-payment of the water bill since it is enforceable against the property at termination of the lease.

Build in some safeguards to minimize the lien risk and let the tenant pay for their personal consumption.

Alana Bates · Answer

@Tracy Streich Thanks! Should I ask for a copy of the bill from the water company as well? I don't want my property to get a lien due to failure to pay.

Tim Jacob · Answer

I think you try to charge them extra upfront and pay the bill yourself.  I recommend metering if possible.  If you seperate them not only can you charge them direct with evidence of usage  but if a leak happens the whole building wont need to be shutoff.  Also you could be charged less for water heat if each unit has its own water heater.  If the building is not empty I would not go ripping up walls to do this.

Peter Tverdov · Answer

You might change your tune when no one tells you a toilet is running because they don't pay water...and the bill is in the thousands.

Alana Bates · Answer

@Patricia Steiner thanks! Great insight! I'd hate for things to get to the point of eviction but it's part of being a landlord. I'll make sure the lease is clear on that note about non-payment of utilities, should I decide to make the tenant responsible for their individual water bill.

Should landlords pay tenant water/sewage?

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