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Updated about 6 years ago on . Most recent reply

Account Closed
  • New to Real Estate
  • Douglassville, PA
3
Votes |
13
Posts

Who pays for utilities?

Account Closed
  • New to Real Estate
  • Douglassville, PA
Posted
How do you determine who pays what utilities? Do you find it to be a unique value proposition to offer fixed utilities like internet or trash as part of the rent?

Most Popular Reply

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Christopher Lombardi
  • Developer
  • Point Pleasant Beach, NJ
216
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Christopher Lombardi
  • Developer
  • Point Pleasant Beach, NJ
Replied

The landlord determines that and its written into the lease.  Just make sure the tenants are aware of who is paying before you give them the lease agreement.   When the landlord pays utilities, tenants tend to not care how much they use and on average utility costs are 30% higher for landlord then they would be for tenant.    In my single family rentals, tenants always pay all utilities, but in multifamily, if the units aren't metered out it can be a little more complicated.  But whenever you can, make the tenants put utilities into their own names and pay themselves.  

Hope this helps.

Chris

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