Utilities

[Aaron Smith]

Hey BP gang,

I'm looking at a 15 unit property in Detroit. The price is decent, as is the rent. However, the landlord pays for everything but electricity. So last year, the utilities came to $17k!!!! Which of course, kills the bottom line. 

If I were to buy this property, how do I go about billing the tenants for water usage? It's a small apartment complex but it doesn't sound like each unit is individually metered. Essentially, I'd be adding $100/mo to their rent. It's not the nicest part of D-town, and it's at 75% capacity. I don't want to chase away the current tenants if I can help it but an additional $17k in expenses is way too much. 

Any thoughts, questions, or comments are greatly appreciated!!!! 

All the best!!!

Aaron