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Updated over 7 years ago,
All bills paid - include in rent or charge separately
New to investing and am assessing a 4-plex. It currently cash flows well, but includes all utilities in the existing leases. As I seek more revenue opportunities, I'm curious if it is better to leave as is or migrate billing separately for water and utilities based on some allocation formula after I receive the actual bills.
My question is...In your experience is it better to include utilities in the rent payment or line-item these out for each tenant?
Any other things to watch out for in "all bills paid" properties?
Longer term I will investigate splitting the meters to offload this entirely.
Thank you in advance.