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Brian Sherman
Pro Member
  • Investor
  • 95821
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What do I charge for utilities?

Brian Sherman
Pro Member
  • Investor
  • 95821
Posted

I split my house up into three units. One unit has nearly the full back yard and has a lot of water irrigation. The front yard is a common area for all three units and also has a lot of irrigation. How do I go about dividing up water charge?

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Nathan Gesner
Agent
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
Agent
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Brian Sherman:

I split my house up into three units. One unit has nearly the full back yard and has a lot of water irrigation. The front yard is a common area for all three units and also has a lot of irrigation. How do I go about dividing up water charge?

Calculate the size of front and back, then do the math. Example:

Let's say the backyard is 5,000 feet, the front yard is 2,500 feet, and irrigation costs $150 a month. This breaks down to $0.02 per foot.

Tenant A is the only backyard user, so he is charged $100 ($0.02 x 5,000). Tenants B and C split the front yard, so they each pay $25.

Include it in their rent and call it a day.

  • Property Manager Wyoming (#12599)

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Jaron Walling
Pro Member
  • Rental Property Investor
  • Indianapolis, IN
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Jaron Walling
Pro Member
  • Rental Property Investor
  • Indianapolis, IN
Replied

@Brian Sherman You need to gather the last 12 months of water bills and get an average for use. Divide it out based on sqft. then charge the tenants accordingly like @Nathan Gesner mentioned. Without submeters you can't do much else. 

Side note; why does a rental need an irrigation system? Personally I'd disable, winterize, or remove it due to costs of maintenance.  

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