Internet and Utilities for Mid-Term Rentals

Medium-Term Rentals
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Internet and Utilities for Mid-Term Rentals

Shane Bishop
Investor · Greenville, SC · Member since 2022 · 69 posts · 38 votes

Looking for some advice on how to handle utilities and internet for a mid-term rental! Do you let the tenant supply and pay for their own internet or is it recommended to offer internet and charge the tenant a flat fee? Also for utilities, same question! We were considering averaging the utilities over the past year for the property and charging that average as a flat fee for the tenants. Any guidance would be helpful! Thanks!

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
1y

I pay the internet / utilities. You can add them but If you just go with what is active on furnished finder you will be right in the market range for the monthly rent and should cover the utilities + some. Most MTRs in my market are including wifi, water, electric, etc.

[email protected]254-718-4249
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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    1y

    I pay the internet / utilities. You can add them but If you just go with what is active on furnished finder you will be right in the market range for the monthly rent and should cover the utilities + some. Most MTRs in my market are including wifi, water, electric, etc.

    [email protected]254-718-4249
    Taylor Dasch | EG Realty560 Reviews
    WebsiteView Page
    3Reply
  • Jeremy Blackburn
    Real Estate Agent · New Orleans, LA · Member since 2014 · 52 posts · 21 votes
    1y

    I would suggest you provide the utilities and internet. Set a utility usage cap that is stated and agreed to in your lease agreement. Considering the averages as you stated would be a good baseline. Invoice the guest for any overages monthly.

    0Reply
  • Adrian Lammersdorf-SciollBusiness Member
    Realtor · FL · Member since 2020 · 227 posts · 101 votes
    1y

    I also do it so that it covers everything.  It makes it easier when you put things into sites like Air BnB and whatnot.

    [email protected]561-305-2404
    Thomas Lynne Realty527 Reviews
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  • Robin Smith
    New to Real Estate · Baton Rouge · Member since 2024 · 44 posts · 28 votes
    1y

    Include the internet and utilities. That’s a lot to ask for guests that are only going to be there a short time. MTR is hospitality, and I’d think you’d lose potential guests if they knew they had to set up utilities. You should look into setting up a cap for electric if you have hot summers or cold winters. 

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  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    1y

    MTR guests expect utilities to be included in the rent, just like STRs. You can set utility caps to encourage responsible use and protect you from huge bills. The guests/tenants pay the overage amount above the cap. Just make sure you have the right language in your lease for this.

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  • Shawn Turner
    Member since 2022 · 2 posts · 1 vote
    1y

    Is there any hard-and-fast rules - like maybe a percentage or something - to increase my vacant property utilities by in order to get an idea what I could expect utilities to be for as a mid-term rental? I know it depends on how many people, etc, but just need to get a ballpark figure. 

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    1y

    @Shawn Turner  You have to look at fair market rent for a mid term unit in your area to set your price, don't have a utility add on amount for MTR. However do set a cap on extremely variable utilities like electric.   Take all the costs including utilities and see if you can cover things with a rental inclusive of utilities and still make a profit. You can call your local utilities and get the average for your unit over the last year or the last couple months.  Keep in mind seasonal rates for electric/gas. Max the internet cost for the provider (e.g. don't use their introductory rate or lowest tier of service), figure in trash and water (they may also give you use over the last year). If the numbers don't pencil so that you are making more with a MTR then LTR I suggest you go LTR. Hope that helps. 

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  • Shawn Turner
    Member since 2022 · 2 posts · 1 vote
    1y

    Thank you Colleen. After realizing from others I’ve talked to that, like you said, there’s really no hard-and-fast method of calculating, I did do that. Along with asking a local agent, which definitely gave me something I could work with. Thanks.

    1Reply
  • Jonathan StyerBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
    1y

    All utilities, landscaping, maintenance, etc. are included in the booking costs for over 100 MTRs here in Columbus, OH. We wouldn't want it any other way as we have control to make sure everything is paid and well maintained. For properties we manage for owners, we put the utilities in our name so if there is ever a service issue, we don't have to involve the owner. 

    Since we manage through our brokerage, we are able to operate with trust accounting and pay the bills directly from the incomes/reserves. Our goal is remove as many barriers for both our guests to book, and our owners to worry about their property. 

    Styer Real Estate Professionals4.941 Reviews
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  • Ian Gilligan
    Rental Property Investor · Dayton, OH · Member since 2018 · 108 posts · 48 votes
    11mo

    Hi all,

    There’s a few posts here about a utility cap. Can someone drill down a little further on this? Perhaps even provide verbiage from your lease? Seems like it would get sticky handling this with a tenant, or put them off of renting with you entirely…

    @Jeremy Blackburn @Robin Smith @Allen Duan

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11mo

    @Ian Gilligan  a utility cap is something you put on something like your electric to limit it so that if someone exceeds normal use by a lot you charge them. This is not a nickle and diming type of cap.  Allow for a generous overage for a utility at risk of significant overusage and cost. In one property we had a cap on water charges and I had tenants exceed it twice and the bill only came quarterly so it was 6 months of use.  In another it is electric, if you run it normally in the summer it is about $180 but I have had one tenant significantly exceed that. Some people don't do caps but if you do just state in the lease that any amount over x on the electric will be charged as additional rent. I also tell people the typical bill is x amount and they understand they have to be very wasteful to exceed the cap. Yes some people won't rent if there is a cap. You have to choose one way or another. 

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  • Ian Gilligan
    Rental Property Investor · Dayton, OH · Member since 2018 · 108 posts · 48 votes
    11mo

    @Colleen F. Thanks Colleen, this is helpful. 

    1Reply
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