Utilities Included or Separate?

5 Replies

When house hacking or just renting in general, what are the pros and cons of including utilities? Also, same question but with furnishing

Depends on your competition.

But in general, I typically like having the tenants pay utilities. Makes the monthly rent price more competitive. And they pay for how ever much or little they use.

I do make it clear in the listing and conversations that they are responsible and will provide prior year estimates where possible so they aren’t surprised.

You will get screwed less often by tenants when utilities are separate. When included they could care less how much they use. Additionally when you encounter a bad tennat they will make you pay, lights on 24 hrs, water running non stop, stove used to heat the unit, windows wide open all winter etc. etc.

Never buy a multi that does not have separate utilities.

Originally posted by @Thomas S. :

Never buy a multi that does not have separate utilities.


Finding water that is metered is a real trick unless you are buying new buildings...

Do you only one one electric meter and one gas meter? If you a separate meter for each unit then there is really no good reason to include utilities. Tenants will abuse the heat and electricity if they have no incentive to respect it by having to pay it. 

Separate unless you have ZERO choice....as stated, if a tenant isn't paying the bill, they couldn't care less about going nuts with water, electricity, gas etc etc.

If you have kids, you know what I'm talking about :)

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