All Forum Posts by: Zach Schwarzmiller

I've actually decided to call the district legislators, they asked me to send in an email. We will see what they say. This may make my decision a lot easier!

Water/Sewer/Garbage - they are all billed through one bill. There is no gas in my building all tenants pay their own electric as it is. I am currently considering taking the entire bill and dividing it by 3, the amount of units. That has been my intent throughout this discussion. As far as legality I believe it is fine as no one has said either way yet, but perhaps I need to discuss with a lawyer.

I am not worried about retaliation. Bottom line is my NOI needs to increase. If rents are either bumped to $1250 or they pay for their share of utilities my NOI will hit the number I am comfortable with. If they pay their own utilities they also have control over saving a little more than if I bump rents. I'd prefer they do not move as I don't want to update their units and they are low maintenance, nice neighbors to have. I just literally have no experience with splitting up a utility bill like this. I've never seen a client do it, and I've never done it. We always implement RUBS programs or individual metering, but I am always working on larger scale buildings which have scales of economies in implementing such programs. And I don't live next to the tenants so I am much more disconnected with how it personally affects them.

It's a good point, Dawn. Option three is always on the table and I welcome them to move if they want.

Yin - my numbers are indeed consistent. The WSG does range between $250-350 per unit per month as of currently. Only difference here is the tenants have some control over that amount. The tenants have no control over the amount of rent paid if it's fixed. The net effect for me is almost the same, with the exception that utilities in Snohomish have statistically increased higher by %/Year than Rent has. This is why I am looking so heavily into this option.

I just bought the building two months ago and have yet to write new leases so I will be having to completely write customized leases for this building anyways, would not be much more work from my perspective to customize for utilities; however, it is very possible that there will be disagreements. The two neighbors are currently best friends and it is 100% obvious I use less water than either of them, so luckily the disputes would be between them and not myself. If it's in the lease and they are obligated to pay because they agree'd I don't care if they dispute among themselves. If this these disputes do cause some legal issue for me in breaking some sort of landlord/tenant laws or RCW bylaws this is something I would love to know as it would completely change my mind and make me not want to do this at all. If it something that is feasibile and legally acceptable I think that is the direction i'd like to go, if the tenants so choose it.

Welcome Kayla! I hope your able to learn what you need to start the business here!

Very interesting indeed! Sounds like a great tenant, I am sure you've made up for it in plenty of bad ones along the way though!

Pat - Awesome! That's what I would be doing if I did not live next-door to the tenants. That does however make me feel better about moving rents up to benefit us both but still not break the bank for them (hopefully). Hoping to have the converstation with them this evening.

Competition is doing both:

1. Rents including WSG between $1,350-$1,450

2. Rents w/o WSG $1,100 tenant pays all utilities

My rents currently $1,000 & $1,100. I pay all WSG.

I was going to sit down with them... I hadn't ever thought of the ballot idea, but perhaps it's not a bad idea either. Although then they may just write your an idiot and ruining our lives! hahah

Actually, Stephanie - Great Idea!

Look guys, here's the deal. Costs have gone up considerably since you have been here. Your a good tenant and I'd like to make this work out for both of us, here is what I am thinking:

Option 1: Raise Rents

Option 2: 1/3 of the Utility Bill

Option 3: Fixed Utility Bill

-- I like this, seems very personable and myself trying to work with them instead of just increase rent and not care about their financial status. I'd really prefer it to work for everyone as I don't want to turn a unit this year!