utilities

[Steve R.]

Hello fellow landlords.

I am on my second rental property in Calgary, Alberta.  That is in Canada, just north of the USA for those of you who does not know.

I like to set up my properties up and down, so there is a basement apartment.

The question that I have not made my mind completely: do I include utilities with the rent or bill them every month for utilities like 60/40?

If I include utitilities in the rent and start getting bills for 1000 every month, I am in red till lease is up.  But it is less paper work for me

If I make them a bill every month, more security for me on a monthly basis, but more paperwork, and the most important issue:

once tenant moves out, by the local regulations I have to give them their deposit back within 10 days if I do not claim anything on it.  But the local utilities company will send me the bill for the last month the tenant lived in the apartment only about a month latter.  Once I give a deposit back, most likely I will not be able to chase the former tenant and collect the last utilities bill from him/her.

I would like to hear your opinions.

Thanks

[Samuel DeMass]

Steve,

Can you sub-meter the utilities and make them responsible to pay their own bills to the utility company?

Just a thought!

Good luck, and keep us posted.

-Sam