Billing city utilities (garbage sewer/water) back to tenants?

[Brandon Capelle]

I own a duplex in Minneapolis, MN and would like to charge the city utilities back to the tenants. Water/sewer isn't metered separately for each unit and the garbage fee is lumped in on the same invoice. Anyone have a good solution or example of what they might be doing to offload this cost and help their tenants realize they should turn the faucet off occasionally? Thank you in advance!

[Tim Swierczek]

@Brandon Capelle My thought has always been to include those utilities in the rent as its typical for the area and good tenants would not allow you to charge full market rents plus water and trash.  Or in other words, you would need to lower gross rent accordingly in most situations.  That being said I get it I have 8 properties in Minneapolis and the costs are definitely higher.  I like the idea of capping the amount you will pay.  I have a cause that does that caps what I will pay at $25 more than the 12-month average.  I would only look to enforce it for unreported leaks or other abuse.  I wouldn't look to charge $10 if it was $25 more than the 12-month average, because it's not worth the accounting time.

The bottom line is MN does have laws on what you can do and how you must inform the tenants of utility history costs if you plan on billing back.  You will want to make sure you arm yourself with the data and prove you gave it to them otherwise a tenant advocate attorney will eat you for lunch.  

Here's the law https://www.revisor.mn.gov/statutes/cite/504B.215