Wholesaler · Los Angeles, CA · Member since 2018 · 41 posts · 16 votes
I'm trying to refine my deal analysis skill through trial and error and one problem I'm running into that is effecting my profit is when to decide if I'm going to be paying for water, power, and garbage? The real estate sites like Realtor.com, Zillow, and Redfin don't tell you this info so how do you guys decide who foots the bill for what?
On multifamily buildings either submeter as much as you can or you’ll need to absorb the utility fees. Make sure the rent can cover these. There are multiple ways to charge the different utilities; Hire a 3rd party and let them employ RUBS, meter it yourself, use a square footage calculation per unit or other system.
On multifamily buildings either submeter as much as you can or you’ll need to absorb the utility fees. Make sure the rent can cover these. There are multiple ways to charge the different utilities; Hire a 3rd party and let them employ RUBS, meter it yourself, use a square footage calculation per unit or other system.
If the meter is separate, they’re paying. It’s also an additional screening tool as they know up front that they aren’t getting keys until I confirm util are in their name and they won’t get a hookup without discharging an old account if there’s an unpaid balance.
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
I'm having a hard time understanding why the landlord would pay any of the utilities in the first place...unless it was a MF and all units were on one meter.
For me, I do suited houses. I’m always stuck paying water and sewer because of a single meter for those. Some people like to sell the theory that “just make tenant A collect from tenant B!” But that lasts about 15 days until the first “hey can you have sally send me money she’s not answering her phone” email and then you’ll get tired of that. If it’s common meter, budget for it, monitor it, and pay for it yourself. Take the annual average x 1.2 and add that to your rent ask. The 20% is a buffer for idiots who wash clothes 9x per day as well as a fee for your time to administer the utility payment program known as scheduled transfers from your online banking.
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
Originally posted by @Account Closed:
@Joe Villeneuve
For me, I do suited houses. I’m always stuck paying water and sewer because of a single meter for those. Some people like to sell the theory that “just make tenant A collect from tenant B!” But that lasts about 15 days until the first “hey can you have sally send me money she’s not answering her phone” email and then you’ll get tired of that. If it’s common meter, budget for it, monitor it, and pay for it yourself. Take the annual average x 1.2 and add that to your rent ask. The 20% is a buffer for idiots who wash clothes 9x per day as well as a fee for your time to administer the utility payment program known as scheduled transfers from your online banking.