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Updated over 7 years ago,
Tenant vs. Owner-Paid Utilities
Hey Everyone,
I have pre-approval letters on a duplex and a triplex, and on the triplex, the owner pays all the utilities. The triplex is listed for $95,000 and brings in $2500/,month in rent, while the duplex is listed at $89,000 and brings in $1300/month in rent. The triplex has separate electric meters. The current owner of the triplex says that insurance, property taxes and utilities come out to $600/month.
Do investors look for one over the other (tenant-paid vs owner-paid), or if a property is owner-paid, do they tend to fluff up the rents and advertise the units as "utilities included," which in my experience simplifies things for renters and makes them feel like they're getting a deal? Is there anything to be concerned about when it comes to owner-paid properties? Is it common for tenants to take advantage of this and crank their a/c all day/leave lights on/etc?
Thank you,
- Derek