Cost of Utilities in Philly for Multi-Family

[Amina Sanders]

Hi BP!

I'm analyzing a deal in Philly and I'm trying to factor in the cost of trash & sewer. I live in South Jersey and I have no idea how much I should estimate. My husband and I plan on house hacking and the 2nd unit would be rented out to students/ young professionals by room. 

Are there any Philly Buy and Hold Investors that would like to chime in? How do you split up the cost of utilities when you have multiple tenants? Do you bill the tenant for utilities separately?

Any advice would be appreciated.

Thanks!

[Yuriy Skripnichenko]

@Amina Sanders and @Randall Kates

What utilities are you talking about?  

Tenants always pay electric and gas bills (unless if you are kind enough to pay that for them) 

Water/sewer bill comes to the owner of the building. However if you are not renting to section 8 tenants you can bill water back to tenants as well. 

You just need to make sure that your property registered for PGW LCP (landlord cooperation program). If you do not rester with the program your tenants unpaid gas bills will stay with your properties and you will have liens.

For trash (refuse collection fee) you pay $300 a year (considering you buy 4 units or less). For any commercial property you will need to contract out with private trash removal company. 

You also need include rental license fee $55 a unit. Lead certification fee if you rent property to anyone with a 6y.o kid and younger. 

If you have a separate electric meter for common area factor in about $28 a month.

Hope this helps.

Cheers,

Yuriy