Apartment Complex Question

4 Replies

Asking about what expense you guys have with apartments and also what do you make the tenants pay?

I'm curious because I'm looking at property in Michigan and they sent me an income statement and it shows they paid water electricity and gas but in the lease agreement it says that the tenant was paying?

Thanks Let me know!

Sounds like they made a mistake on their lease or just aren't very professional.

You typically want the tenant to pay utilities directly. If the utilities are on a shared meter, then you may have to include them and bump the rent higher to cover the cost. Try to avoid that as much as possible.

Apartments have common areas, so landlord usually has an electric meter in their name to cover common area lights.

Regarding the gas & water, they may only have a single meter for each and pay it, but then segregate the bills to each unit.