Updated 9 months ago on . Most recent reply
#2 Real Estate Deal Analysis & Advice Contributor
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Utilities included worth the risk?
#2 Real Estate Deal Analysis & Advice Contributor
Hi fellow BP fans,
Considering mid-term rentals (MTR) for my single-family home (near two hospitals, targeting traveling nurses/doctors). Most MTRs in my area include utilities, but my California property has very high utility costs (PG&E - could easily be $1000/month with regular AC/heat use). Is it best to simply increase rent by a fixed amount (e.g., $700) to cover this, or are there other strategies for handling utilities in this situation? Any advice appreciated!
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@Jorge Caceres how big is this property? I would definitely go with a utility cap. You aren't trying to nickel and dime people but just to curb abuse so it should be generous. The issue will be if you have a number of rooms and a single abuser. I have a long term rental where I had to put in a clause that I would fine for open windows in winter. That tenant is gone now but it is something I go over on occupancy as unacceptable.