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Updated about 7 years ago,

User Stats

5
Posts
3
Votes
Matthew T Fox
  • Columbia, TN
3
Votes |
5
Posts

New owner wants to change old lease

Matthew T Fox
  • Columbia, TN
Posted
Hey BPers! Just joined and first time posting. I am fairly new to investing and am looking at purchasing a duplex that is bank owned. Current, long-term tenants in place. One issue I don't love about the current setup: one electrical service entrance/meter and the current owner (bank) pays all utilities for both tenants. I wouldn't want to come in and rock the boat too much, but am thinking of potential options to assist in cash flow. Utilities are approximately $350/month. Considering 1) modifying agreement to say landlord will pay first, say, $200 and the tenants split anything over this amount, or 2) exploring adding second meter (don't know cost on this/don't know current wiring setup, or 3) raising rent (which is low) to absorb some of the cost of utilities. Anyone dealt with this type of situation or something else where you've had to come in and be the "bad guy?" Any creative or alternative ideas here? Any insight is greatly appreciated. Thanks!

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