Why or why not pay for Water trash etc.utilities Single Fam House

[Will F.]

So I'm going through my rental property portfolio and raising rents due to proposition 10 and possible rent controls in California... see (no on prop 10 www.noprop10.org)

For single family houses:

I was wondering what the pros and cons are to paying for utilities?

Obviously it is a benefit to pay for water because perhaps the tenants could water the landscape. Perhaps put a clause that they have to keep the landscape watered? But do you think I shouldn't do this so I can increase total NOI?

Also anyone see pros cons of paying for electric, gas, trash pick up?

[Ned J.]

There is ZERO upside to paying utilities at a SFR.... if its free to the tenant there is ZERO incentive for them to keep their use reasonable....

If I didn't have to pay my utilities you can be damn sure I would have my AC on 70 degrees on ALL summer and the heat at 82 ALL winter