Duplex utility separation

[Kyle Inbody]

I’m currently looking and negotiating a price on an older duplex for my next house hack.

The issue I’m debating how to handle now is the utility situation. There are 2 gas meters, 2 electric meters, and 1 water meter.

The lower unit has the h20 heater hooked up to its gas. I can see this causing issues in the future when I move out since that tenant gets stuck with the water heating bill for both units.

What I’m thinking:

1: including water but putting in the lease a clause that any water bill over “X” will be spilt by the 2 units based upon occupants on the lease. (Ex- a Unit with 3 occupants would pay 3/4 of the overage and a unit with 1 occupant would pay 1/4)

2: keep the lower unit’s gas in my name and add a sub meter to the water heater and then send the lower unit a gas bill less the amount consumed by the water heater.

Or

Estimate usage on all gas and water bills then build it in the rent amount with a similar overage clause. ( I don’t like this idea as I want the tenants to know directly how much it cost to keep the windows open or crank the heat to 80, this is close to a University and I expect a lot first time renters to apply)

Does anybody have experience in including water with limits specified in the lease?

Has anybody tired sub metering a single utility in a similar fashion and sending the bill to the tenants?

There is limited room up stairs for an additional water heater and the way the plumbing is routed separating the water and adding another water heating will be extremely costly.

Thanks in advance for any ideas on the utility head ache!