Updated about 6 years ago on . Most recent reply
Utilities in St. Louis
Hi all. Newbie here. I noticed Brandon Turner often mentions his tenants pay all the utilities in his rentals. That was a new concept to me, since every apartment I had ever lived in the landlord paid water/sewer/trash. I'm wondering what seems to be the norm in St. Louis? It would be great if tenants paid those utilities, but if I should plan on paying them it makes a serious dent in my cashflow. I'm running the numbers and hoping to get my first multi-family, and I'm just wondering if I should plan on these expenses. Secondly, if your tenant pays all the utilities, do they expect to pay a reduced amount of rent? Or do you still ask for a market value rent and the tenant pays utilities? Thanks.
Most Popular Reply
Hey Amanda,
A little more advise. In the City (where all my rentals are), water is flat rate based on number of rooms, number of showers/baths, number of water closets, and the frontage. Sewer is the same, but does not include frontage. Trash in the City is $14/unit and is billed quarterly with the water bill. If Water and Sewer are not paid, liens will be placed on the property, which is why landlords normally pay these expenses. Gas and Electric are personal obligations, not tied to the specific property. Basically, if your tenants does pay the electric, it sticks with them. If they don't pay sewer, MSD will lien your property.
-Zach