Installing sump pump under quadplex. Who pays electric?

Question

Max T. · Answer

The right answer is to get a 5th meter in your name for it. In Philly they call it the "Public Lighting" account.

Dick Stevens · Answer

That only works until a tenant complains to the city that you charge them for common electric.

Dick Stevens · Answer

If a tenant finds out that you put the pump on their meter and they report you to the city or board of health you will end up paying their full utility bill.  How do you not have common electric in a 4 unit?

Wesley W. · Answer

@Dennis M. It's not uncommon here, either.  But are you sure it is perfectly legal and acceptable?  I learned the hard way.

https://www.pabulletin.com/secure/data/vol28/28-44...

Wesley W. · Answer

Here, if the tenants find out and report you to the utility company, they will unilaterally switch the utilities account into the owner's name and may go back retroactively to when the tenant assumed the utilities account and sock you with the bill.  If that's not bad enough, once it's placed in the owner's name, you can either appeal to the regulatory agency (minimal chance)  OR rewire the circuitry, get electrical inspections with utility provider oversight and micro-managing of your building, and settle your big retroactive bill to get it back in the tenant's name.

Now, before you ask how could they possibly find out? The professional tenants share this kind of info in some circles, and all they have to do is call with the suspicion that their usage is less than their bill, and they utility will send a tech to inspect all circuits.  You'll get a letter demanding access to all units of your building, as well as where the meters are.  There is a term for this that I am avoiding using, lest some unscrupulous tenant do an internet search and find a thread like this.

I had this happen on two different buildings we bought because the previous owner did what you are suggesting .  It was a mess.  Took lots of time, aggravation and stress.  It's really, really, not worth it.

$10/ month is a bargain.

Wesley W. · Answer

I own several 4-unit buildings and none of them have a house meter.  If they have a house meter, it's almost a deal killer  for me unless the the price is ridiculous.  Having a property with a house meter is conceding at least $30/month cash flow, forever...

Wesley W. · Answer

I would tie it in to one of the rental unit meters and offer the tenant a utility credit on their rent.  This will save you the time and aggravation of having a commercial account (since the utility is not in a living space) with deposits and monthly connection charges, etc.

I offer a $10 monthly credit (via addendum) which is more than enough to cover the electrical usage many times over, and my tenants appreciate the transparency and the slight cash flow on their end.

Our local utility (Nat. Grid) finds this acceptable as long as there is a written agreement in place prior to the tenant taking on the additional usage.  (Usually this happens when a new tenant is on-boarded, since the circuits with the common usage have already been in place.)

Installing sump pump under quadplex. Who pays electric?

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