Transferring water and sewage to tenants?

[Gerardo Ali]

Looking to purchase my first multi family, was wondering what is the best way to transfer or other ways to make tenants pay for water and sewage?

[Nathan Gesner]

You can include it in the rent. Determine an average, divide that by the number of units, increase the rent to match.

Average utility for past year is $100 and you have four units. Increase rent $25 each and include that utility in the rent.

I recommend bumping it 10% per unit to cover fluctuations. I also recommend putting a cap on it. In other words, include utilities up to $30 per unit but if the water bill shoots up then charge the excess to the tenants. This helps prevent waste.