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Updated about 4 years ago on . Most recent reply

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Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
3,901
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Charge back utilities to tenants in Iowa?

Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
Posted

Is anybody in central Iowa charging back utilities to their tenants? Obviously, this would be when a multi family property does not have separate meters for everything. For example, in Des Moines, the water and sewage is often on one bill that the landlord pays. If say, you have a duplex and the bill is $50 each month for water and sewage, would you put in your lease that the rent is xxx dollars, plus $25 for utilities? I ask specifically for renewing a lease. Instead of raising rent, keep rent the same and charge back for utilities. 

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Terry Mclain
  • Rental Property Investor
  • Parker, CO
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Terry Mclain
  • Rental Property Investor
  • Parker, CO
Replied

Anthony, you could Charge a flat rate, use a RUBs method or sub meter the property. I use a system called True Submeter (disclaimer I sell their products if you want to see how they work) which is an in-line meter that goes on the water line and bills for actual usage. Then in your lease you would say the tenants are responsible for paying their own water/sewer charge. Several options to choose from that help you recoup costs. 

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