I'm looking into small multifamilies in CO Springs, but am an OOS investor. Does the landlord or tenant normally pay utilities in this area? And if it's the landlord, what is a good way to estimate what the cost would be monthly for a triplex or quad?
Th best answer for CSU is it depends... Utilties are something I would encourage you to always have the tenants pay but it is a negotstiable item in a lease. If leasing a SFH, its very easy to enforce the tenants paying for all utilities. Many CO Spgs multifamilies are only partially metered out. I've most commonly seen electric and gas be metered out and water and sewer combined. You'll need to do your due diligence on every property. I've seen many CO Spgs listing agents not list all the utilities, never assume if it's not listed it doesn't exist or was supposed to be grouped with the others. With some of the multi-family properties we manage in town, the electric and gas are metered out and in the tenants names. The water and sewer are then billed back to the tenants as a monthly flat fee on top of their rent, thereby eliminating the landlord paying for no utilities.
For sewer and trash, i used to bill tenants a flat rate of $60 per door for a 4plex (4x2/1) and that usually covered it. Now i just have a billback clause in the lease so they cover the exact amount.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.