Separating utilities

[Justin Repp]

Hey folks.  I am looking at a MF property that is priced pretty well and is in good shape.  The cap rates with heat, electric, and water/sewer included in the rents are respectable but would be double digit if I could separate the utilities.  If I can do this I can see this as a great value add for this property.  Does anyone have experience doing this?  I know it will cost $ and I can talk to the right people to figure out pricing but I am sure there are some of you out there that have experience with this and can share some insight.  Thanks!

[Michael Noto]

@Justin Repp Before making the decision to separate utilities make sure that your competition is requiring tenants to pay for their own utilities as well.  You do not want to be the only landlord in the area that doesn't include utilities in the rent if everyone else does.