Utility Expenses when Analyzing Properties

[Austin Underwood]

Hey all,

I am a newbie.  I have not yet invested in real estate though I am a graduate student and will be graduating next May and hope to jump into it as soon as I know where I will be living (due to my full time job options).

I am analyzing properties using the BP Rental Analyzer and have a recurring question.  How do you determine which utilities (electric, water, gas, trash, etc) the renter pays?  I am assuming you have to honor any existing leases on a property, but after that runs out is this completely up to the investor?  I see properties where investors pay some or all utilities and others where investors pay none.  Do they do this because that is what is comparable in the market or how is this determined?  What if you buy a property that was previously owner occupied, is this case determined any differently?

Thanks for your help, I hope to one day pay it forward,

Austin Underwood

[Bryan H.]

The market may dictate and the property may dictate too. 

If you buy a MFH it may not be set up for separate metering, so chances are you will need to pay that. 

On my SFHs my tenants are responsible for all except trash as it's part of my taxes. Water, sewer, electric, gas, cable, lawn maintenance is all on the tenant.