Net or gross lease for single and small multi-family?

[Tom Tippmann]

Hey everyone, Hope it's a good morning. For single and multi-family properties do you typically have a gross lease where your tenant pays a fixed amount every month or a net lease where your tenant gets the water, the heat, utilities, etc. and they pay it on their own? Thanks in advance, Tom

[David Oberlander]

Only net leases, if possible.  I have one multi-family which only has one water meter so that I pay (and keep an eye on).  All the others, the tenants pay for water/sewage, electric, cable, etc.  Trash is the only exception.  I don't want that being "missed" but it is usually included in the tax bill.  Let them pay for what they use and they'll waste less. 

And you don't have to spend your time paying their bills, too.  Another benefit.