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Updated over 5 years ago on . Most recent reply

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179
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Christopher Malone
  • Investor
  • Chicago, IL
122
Votes |
179
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Attention Chicago Landlords - Who pays the water bill?

Christopher Malone
  • Investor
  • Chicago, IL
Posted

Hello everyone,

I own a SFR on the South Side of Chicago that is currently occupied to a Section 8 tenant. I am in the process of closing on my next SFR rental and while looking back at the performance of my previous rental, I noticed that I am taking a bit of a hair cut when it comes to the water bill. Long story short, I receive $1175 for the home, $45 of that is for the water bill. I have a smart meter on the property so every 2 months I receive a bill of about $200. So every 2 months, I receive about $90 for Section 8 for the water bill, but I still take a $110 loss give or take. I originally chopped this up as the cost of doing business in Chicago since the risk of a tenant not paying the water bill could result in a lien being placed on the property, but I started doing research. I found on the city's website that the water bill can be made to the attention of the tenant, but still be monitored by the owner. Has anyone placed the water bill responsibility on the tenant in Chicago by having the City send them the bill? If so, how did it, or is it working out?

Things to note:

  • Outdoor Water Handle is removed
  • There is active laundry hook ups 
  • Water control items that were sent with the smart water meter are all installed 

Most Popular Reply

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6,130
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5,071
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Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
5,071
Votes |
6,130
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Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
ModeratorReplied
Originally posted by @Christopher Malone:

Hello everyone,

I own a SFR on the South Side of Chicago that is currently occupied to a Section 8 tenant. I am in the process of closing on my next SFR rental and while looking back at the performance of my previous rental, I noticed that I am taking a bit of a hair cut when it comes to the water bill. Long story short, I receive $1175 for the home, $45 of that is for the water bill. I have a smart meter on the property so every 2 months I receive a bill of about $200. So every 2 months, I receive about $90 for Section 8 for the water bill, but I still take a $110 loss give or take. I originally chopped this up as the cost of doing business in Chicago since the risk of a tenant not paying the water bill could result in a lien being placed on the property, but I started doing research. I found on the city's website that the water bill can be made to the attention of the tenant, but still be monitored by the owner. Has anyone placed the water bill responsibility on the tenant in Chicago by having the City send them the bill? If so, how did it, or is it working out?

Things to note:

  • Outdoor Water Handle is removed
  • There is active laundry hook ups 
  • Water control items that were sent with the smart water meter are all installed 

 It all goes back to your lease and how it is negotiated.  You can do whatever you want really as long as it is agreed on.  If you are going to ask them to pay water, I would keep it in your name, and bill the tenant with 30 day terms.  That way you are making sure it is paid 

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