8 unit property with only 1 gas meter, 1 water meter - what to do?

[Tony Nguyen]

Hi everyone,

I'm under contract for an 8 unit right now and the leases say "LANDLORD PAYS FOR GAS AND WATER".

This isn't something I really like b/c I can totally see tenants abusing this so I wanted to know how do you handle this? Do you just make sure to build in the cost in the rent to cover this or how else?

I've thought about inquiring about splitting it, but am not sure. Do any of you know approximately how much splitting 1 gas/electric meter into 8 would cost? Would it be worth it in the long run?

Reviewing the property, I've built the utilities cost into my numbers and it will still be a good buy for me, but if I can find a way to drop this expense, I'll be able to increase the value of the property so much more. If it matters, the exit strategy on this is a 1031 exchange in 2 - 3 years.

Thanks everyone!