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Updated over 5 years ago on . Most recent reply

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Lauren Simmers
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9
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Rental Utilities- who should pay?

Lauren Simmers
Posted

We are looking for deals, but the question comes: should tenants pay for utilities: mainly electric & heating oil or would you have the expenses calculated in the monthly rent? We bounced this back an forth but need some other opinions.

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PJ M.
  • Philadelphia, PA
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PJ M.
  • Philadelphia, PA
Replied

This depends on local customs as well as local laws.  When I started 20 years ago in the Philly area, all utilities were paid for by the tenant except for water.  That was kept in the landlord's name and paid for by the landlord.  Now, it still remains in the landlord's name (as it is a lienable item here), but the costs are paid for by the tenant.  

We've also got laws in place that prevent charging tenants for utility usage unless they are separately metered.  I believe the New York City has a similar requirement.  Get to know the area you are in.  See what the competition is offering/requiring and most importantly, learn your local laws to see if they have requirements you must follow.

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