Utility segregation

[Tanner Gish]

Hello wonderful BP community! Here's a question for all the apartment junkies – I'm running numbers on a deal from a broker where looks like there is opportunity for management and utility segregation value add. 26 units, mix of one bed to four bedrooms, in Cincinnati Ohio. The greatest opportunity here lies in figuring gas and electric to tenets, and ideally water as well. In any of the deals that analyzed in the city, underpaid utilities for the utilities are normally in the tent $20,000 Per year range for this size property. This one is at 42,000 a year! Obviously, it's going to vary per market, and for property, that when doing preliminary analysis, what rules of thumb do you use for estimating the cost of segregating utilities ? Thanks guys! -Tanner