Pay to split water meter? Or Surcharge tenants?

[Chinedu Akunne]

Analyzing some deals on ways to increase cash flow on multi-family properties...

One of such deals is a 5-plex, with one water meter. Current landlord pays about $60/unit/month on water, sewer and garbage. That's $300/month that could be cash flow. I would like to change that. I have two options...technically 3;

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A- Continue to pay $300/month (not really an option, lol)?

B- Pay ($3-4k) to split the water meters, and transfer the (water-sewer-garbage) bill, plus deposit to each tenant?

C- Surcharge the tenants $60/month. and absorb the occasional overage. But, pay $0 upfront to split the meters?

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B or C? 

As the new landlord, what would you do? Which received better by the tenants?

As a tenant, which would you rather? Keep in mind that option B also comes with a deposit to the utility company

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Thanks,

Chinedu