Handling Utilities in Multifamily

[Jaime Wright]

I’m looking at purchasing a my first Multifamily apartment 4 unit or 8 unit. One thing I noticed in these older buildings is most time  utilities is NOT separated. Therefore, heat, gas and water are ALL paid by landlord. How are you guys handling this issues since these items can vary wildly? Would you still invest if they were not separated? Are you are sub metering? How much does cost typically to separate especially gas and heat?

[Thomas S.]

More work, higher risk generally a PITA.

I never invest in units that do not have separate utilities in tenants name. Plenty of better deals to waste time on a property that will be a headache.