Advice Needed on Lease Renewal and Utility Inclusion

[Rey Jaj]

I have two units up (out of four) for lease renewal at the end of July. These are the only units that currently do not pay utilities, which amounts to about $250 per month per unit. I included utilities in the new renewal agreement while keeping the rent the same.

One of the units has responded, stating that they would prefer to continue having utilities included otherwise, they may consider moving out. I need your advice on how to proceed with this situation.

[Lindsey Mannix]

HI Rey,

Another option of something to offer them is that you'll cover up to a certain amount and any overage, they will pay. If they're a tenant you'd rather see go, I'd let them go and find another resident who is okay paying for utilities. We've also found that including it in the rent, people aren't as conscious of lights, water, etc...

~ Lindsey

[Nathan Gesner]

Quote from @Rey Jaj:

Let them go.

You should make the tenant responsible for their own utility accounts if the situation permits. Including utilities in the monthly rent is more likely to cost you and create problems.

[Cody Journell]

@Rey Jaj if you’re confident you can rent it in a reasonable time just let them go. Whatever you lose in a turnover will be made back pretty quickly once you get a tenant in there that takes that utility burden off your hands. That’s another $3,000 to the bottom line for each unit!

[Theresa Harris]

Either let them go or include utilities WITH a $200 rent increase.

[Rey Jaj]

Thanks for sharing your views. What do you think about reducing the rent by $100 and transferring the utilities to the tenant's name?

[Rey Jaj]

I just want to update you on the outcome: the tenants have signed the lease, including transferring the utilities to their names. I have given a $50 discount on the monthly rent.