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Updated about 8 years ago on . Most recent reply

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Jill Herges
  • Rental Property Investor
  • Minnesota
5
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28
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Combined utilities in duplex

Jill Herges
  • Rental Property Investor
  • Minnesota
Posted

Looking for some advice on a duplex I am evaluating.  It is a great deal on paper, but the utilities are not separated out.   It is an up and down duplex in a 1915 house so I suspect separating them out would be costly at best and not possible at worst (without a complete gut of the interior). The current owner bills the tenants for the actual utility bills.  If I do that, do I just split it 50/50?  One unit is larger so by default it will use more heat and electricity.  My real concern is what recourse I have if they don't pay? If they don't pay rent I can evict, but could I put a clause in the lease regarding utility nonpayment? The bills will be in my name so I will pay them regardless. Just wondering what others have done with combined utilities?

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Replied

My advice is, regardless of the deal, pass on any property that does not have separate utilities.

They are not worth the hassles considering there are always more deals around the corner.

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