Splitting Utilities In a 2-Unit Condo, One Meter

Splitting Utilities In a 2-Unit Condo, One Meter

Rental Property Investor · Craven County, NC · Member since 2016 · 146 posts · 61 votes

I am currently purchasing a condo that has a studio unit and a 2bd 2bth unit, not metered separately. I’d like to bill the tenants back by number of people in each unit for water, and sqft for electric. The reasoning behind this: water usage is pretty much going to be an average amount per person, regardless of unit size, whereas with electricity, a larger unit typically uses more electricity: more outlets, gadgets, lighting, heat/air. This would be the breakdown:

Water

2bd 2bth unit (2 tenants) = ⅔ of the bill 

Studio (1 tenant) = ⅓ of the bill

Electric

2bd 2bth unit (1,000 Sqft) = 1000/1350 or 74% of the bill 

Studio (350 Sqft) = 26% of the bill

Here’s what's tripping me up. The current property management has warned me not to bill tenants back in this manner. They said that  they “cannot legally” do this because of landlord-tenant laws and the liability of tenants complaining, then suing due to paying an unfair amount of utilities because another tenant over consumed. However, I have heard other management companies using this method. Property is located in Eastern North Carolina in New Bern. Is this an atypical, legally loose way to bill back tenants? Or is the property management being overly cautious in their advice?

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  • Rental Property Investor · Wake Forest, NC · Member since 2016 · 106 posts · 148 votes
    7y

    I think you want an in-line sub meter. Easy to install and a lot less hassle. https://truesubmeter.com/#benefits is a type. Just google what might work for your budget. Hope that helps.

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    7y

    @Padric LynchDont try it with the electric , Here is why .  I am a single guy who travels for work , I live in the studio , I dont use the oven and do 1 load of laundry a week . I am there 3 nights a week due to work . I watch tv use the microwave and bathe .

    Now the 2 bedroom , new tenants move in , husband , wife 2 young boys share a bedroom . Stay at home mom who likes the house warm in winter and cool in summed , constantly baking , does a load of laundry a day , runs 2 tvs all day long . 4 baths a day . Dont forget 1/2 hour blow drying hair .   ALL suck up electric 

    The studio apt will be subsidising the 2 bedroom unit  electric and water usage . 

    I dont believe this is legal to do either

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