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Updated over 4 years ago on . Most recent reply

User Stats

27
Posts
17
Votes
Abby Link
  • New to Real Estate
  • Cleveland, OH
17
Votes |
27
Posts

Utility Expenses for a quad

Abby Link
  • New to Real Estate
  • Cleveland, OH
Posted

Hey everyone!

I am in the early stages of real estate and am currently trying to learn how to analyze deals. Right now I am trying to figure out exactly where all of the expenses come from.

When I watch videos on analyzing deals, most people do not account for utility payments as they will make the tenant pay. However, I am curious how much this will jack up the prices in total for the tenants and if the property owner pays any of the prices like water, sewage, garbage etc. 

And if it is best to have the tenant pay for these expenses how do you go about charging them? Do investors typically charge a roundabout cost and put that into the rent (and if so, how can I formulate that roundabout cost for each unit). I know that there are sub-meters that can be installed into the multifamily home but a lot of places aren't built to support them.

Any advice would be greatly appreciated :)

-Abby

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