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Who & How Are Utilities Paid?
Good morning!
I'm new to REI and spending most of my free time reading and digesting information (currently reading @Brandon Turner's Real Estate Investment book).
I built a spreadsheet that lets me calculate cash on cash ROI so I can test sample homes to understand the impact of certain expenses, but one expense I'm struggling to understand are utilities. I have a few questions that I'm hoping the folks on BP can answer!
- Does the landlord or tenant traditionally pay utilities?
- If the tenant pays utilities, is that amount rolled up into the rent or paid separately?
- When listing a rental property on any MLS website, would the $$$/month include the utilities?
- If this is a contract-by-contract basis, what method do you use to manage utilities?
- Is there a good way to estimate total utility costs? (Electric, gas, water, sewage, etc)
If it helps, I'm located out of Houston Texas. Thanks!