Outrageous Water Bills

[Roseann Koefoed]

I'm under contract to buy 32-units in the southwest suburbs of Chicago (by far my biggest purchase).  This particular town is pulling water from an adjacent river and the resultant water bills are off the charts, almost $40k per year for all four buildings!  All 32 units are 2-bed, 1-baths.

I've underwritten this cost as-is and still want the buildings.  But it would be a home run if I could get the water cost under control.  Any tips from landlords that have successfully reigned in water costs?

[Drew Sygit]

32 units may be enough to cover the cost of submetering and passing the water bills onto the tenants. Then they'll be on your side to control water expenses.