Question About Utilities

[Jake I.]

I see on most of the Bigger Pockets blogs, podcasts, or webinars that when analyzing a property and its expenses, many times utilities such as water/sewer/garbage, electricity, gas, etc. are thrown into the expense column. My question, is the landlord paying for some or all of these utilities common?

Every place I've ever rented be it a house or apartment, I was always responsible for the utilities. It makes sense to me that I would have the renter responsible for all utilities creating less expenses for myself as a landlord. In my experience it didn't appear that I was getting a deal on rent because I was paying for all my own utilities.

Does it depend on your city, state? Does it depend on the area of town? Is it harder to rent to middle to lower income neighborhoods if you're not paying for those utilities?

I live in San Antonio, Texas and have rented both here and in Tucson, Arizona.

Thanks in advance for all replies.

[Josh Nicolson]

For me it completely depends on how the building is built. If it's seperately metered I make the tenants pay. If it's master metered, I pay the utility. 

Even in Arizona I buy properties with master water meters and I foot the bill. However, I stay away from properties with master electric meters. If I do buy it, I spend the money to split the master electric meter into individual meters. 

Seperately metered utilities makes life more predictable. And when you split the meters, tenants are more responsible, and everyone involved saves money (tenant and landlord alike).