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Updated almost 6 years ago,
Opinion on Subletting
Looking for some advice on subletting. Bought a single family that was converted to duplex years ago. 3 Bedrooms 1 Bath on main floor. 1 Bedroom 1 bath upstairs with full kitchen. Upstairs has separate side entrance to the stairs. Stairs leading up is also currently open to the main living area of the main floor as the last owner used it as a single family using both floors. Utilities are not split and cost to do so is cost prohibitive. I am not sure if I should keep it single family and allow them to sublet the upstairs or wall off the living room and use it as a duplex.
I do not want to bill tenants monthly for utility usage. Not only a hassle but I foresee people complaining about usage and I don't want to mess with it. I am considering just building the utility costs into the rent. Only thing I don't like about that is I don't have solid financial history to go off of and I added baseboard electric heat upstairs so I would be guessing for the first year.
So I was thinking what if I lease it as a single family and allow the tenant to sublet the upstairs themselves? I would still want to approve or background check them but it seams like it would be the best scenario. Tenant pays utilities and rent and they work out a split between them and their subletter on how to split it up. It takes me out of the picture and also reduces my time dealing with any potential issues between the 2 tenants since they would know each other and would more than likely work it out themselves.
Would love some advice!