How to split utilities

[Connor Streit]

Hello all,

I am currently analyzing a 4-plex deal that could provide some significant cash flow. However, the current landlord pays for all the utilities which comes out to roughly $500 a month. The rents are currently as listed:

Upstairs Unit 1: 2 bed 1 bath $850/mo rent

Downstairs Unit 2: 2 bed 1 bath $650/mo rent

Upstairs Unit 3: 1 bed 1 bath $600/mo rent

Downstairs Unit 4: 2 bed 1 bath $625/mo

Does anyone have any experience in changing contracts to maintain rental income coming in while trying to get tenants to pay for their own utilities on one meter? Would appreciate any help!!

[Jean Mercer]

It will be smartest to add meeters - it would save you money in the long end. Tenants tend to use less power when they are responsible for the bills. Also, no one can complain that they are being charged for power someone else is using if you try to divvy up the bill.