In the midst of submetering apartment - need help on lease change

[Jonathan Beasley]

Hey BP Studs and Studettes. I'm pulling the trigger to submeter water and sanitation at an apartment. It is a 6 units, with 3 of the leases up in the next 30days. I have a 4th renter that is very behind in rent, and so I may ask them to agree to pay their own water or just proceed to eviction. 2 questions. 

1. How can I get the last 2 tenants to sign off on paying utilities mid-lease? Or can I do that at all?

2. What is some good "language" to put in the new leases to account for paying their own water and trash??

Thanks!!!!

[Marc Roth]

This is exactly what we do. Unfortunately some landlords don’t consult with us first before putting leases in place in setting up a long range Energy Managent plan in coordination with the leases they sign. 

There is most certainly a methodical and intelligent way of installing sub-meters and ensuring an additional profit. This increases the value of any property as well as making it easier to refinance or leverage to buy additional properties. Lenders and property owners/managers love these additional income streams. With continual increases in Utility costs it’s an area that is many times ignored until an issue arises or a big bill arrives. 

It’s not as simple as people believe since Utility bills are complicated by nature. Every Utiilty is also different so you have to know that market, what’s available and how to put into effect a concise plan with guarnranteed supply rates in the case of Electric and Natural gas. 

Way too much to go over on a forum so if you want help feel free to PM me and I’ll see what can be done. It also must be coordinated with your Real Estate attorney since we leases are involved.