Investor · Lincoln, NE · Member since 2018 · 17 posts · 6 votes
For those experienced investors with SFH rentals, do you topically cover garbage, water and sewer? I know that investors typically cover those expenses on multi-families, however not sure about SFH. I have yet seen a SFH investment that makes sense with I account for those expenses in my area.
Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
8y
Hi @Victor Andrade I imagine you'd need to do whatever makes you competitive in your market. Here in Metro Atlanta, tenants expect to pay for those expenses directly, so we as landlords do not cover them.
The one exception I can think of would be condos, where the monthly fee includes water and sewer, but we don't lease condos (for that reason and a whole bunch of others).
Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
8y
Hi @Victor Andrade I imagine you'd need to do whatever makes you competitive in your market. Here in Metro Atlanta, tenants expect to pay for those expenses directly, so we as landlords do not cover them.
The one exception I can think of would be condos, where the monthly fee includes water and sewer, but we don't lease condos (for that reason and a whole bunch of others).
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
I put sewer and water in my name, but I'm set up to be notified of the bill is delinquent, which is common in my area. Garbage is handled by the municipality and covered in my property taxes, so I pay that.
Investor · Atlanta, GA · Member since 2014 · 389 posts · 250 votes
8y
Ditto what the others have said (usually tenants pay their own utilities), and require them doing so in the lease (especially if the house has gas on top of electric and water). Check local rental listings to see what other SFH rentals are including or not including, and/or call the number & ask.
Also, check with the utility companies to see if they offer a "landlord" account system, so if/when utilities are disconnected the service & billing roll back over to you. You'll know if the tenants are in trouble, and it's easier on turnover to keep services on for repairs, etc. No costs for setting up a new account for a month every time someone moves out.
Investor · Lincoln, NE · Member since 2018 · 17 posts · 6 votes
8y
That was a good a idea, I checked listings and called the utility companies and it looks like you are all correct. Tenants take care of all utilities for SFH in my area. However, for small multifamily typically the landlord pays for water and sewer. That will make a difference in analyzing deals now, thank you!
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
8y
SFH-if they use it they pay the bill. In our county tenants who were supposed to pay trash often are delinquent and city has to put liens on 1000s of homes every month. In this case landlord pays and include in the rent. Water can run $1000+ easily a month in our area, you want to them to pay.