Water/ Sewer bill in Cleveland, OH area for duplexes / 1 meter

Water/ Sewer bill in Cleveland, OH area for duplexes / 1 meter

Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes

Hi. I am trying to estimate how much the water/ sewer bill will be for a duplex in Cleveland, OH  ( I have 2 duplexes currently in escrow)

There is one meter for both units, so landlord is responsible for water bill. This doesn't give the tenant much incentive to keep the water bill down. Just wondering how much it may cost me on average for these bills.

Thanks in advance!

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Member since 2018 · 200 posts · 123 votes
6y

Ask the selling agent for copies of the last few months water bills.  When you close on the property you could either sub-meter, divide up the cost of the water bill based on number of tenants or bake it into the rent.  If you sub-meter or divide up between the tenants make sure to have that covered in your lease.  If the units are occupied when you close you'll be stuck with whatever the current lease states.  

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  • Member since 2018 · 200 posts · 123 votes
    6y

    Ask the selling agent for copies of the last few months water bills.  When you close on the property you could either sub-meter, divide up the cost of the water bill based on number of tenants or bake it into the rent.  If you sub-meter or divide up between the tenants make sure to have that covered in your lease.  If the units are occupied when you close you'll be stuck with whatever the current lease states.  

  • Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes
    6y

    @Craig Sloan Thanks. It's been vacant and seller is newer owner with no tenants. I wonder if the water company could help, but the Cleveland Water Co. seems to be a very much hated company, with the worst reviews I have ever seen.

  • Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @James Runkle:

    Hi. I am trying to estimate how much the water/ sewer bill will be for a duplex in Cleveland, OH  ( I have 2 duplexes currently in escrow)

    There is one meter for both units, so landlord is responsible for water bill. This doesn't give the tenant much incentive to keep the water bill down. Just wondering how much it may cost me on average for these bills.

    Thanks in advance!

     That's one common reason why some investors go with SFRs. It can be difficult to estimate these things. Plus if you get a family in one unit that loves long showers you have no way of knowing which unit is causing the pain in your wallet! 

  • Property Manager · Cleveland, OH · Member since 2016 · 67 posts · 53 votes
    6y

    You can include it in the rent, submetering may be expensive and generally not worth it. For a duplex, depending on the area, will be $85-130 a month for sewer and water. Here is the Cleveland Water rates table: http://www.clevelandwater.com/customer-service/water-rates/rates-fees

    I would also recommend swapping out the toilets as many old toilets in Cleveland are 1.6 or 1.9 gpf. Home Depot has the Niagra Stealth with a 0.8 gpf https://www.homedepot.com/p/Niagara-Stealth-2-Piece-0-8-GPF-Ultra-High-Efficiency-Single-Flush-Elongated-Toilet-Featuring-Stealth-Technology-in-White-77000WHAI1-N7714-N7717/205611735

    Additionally you could swap the shower heads for low flow ones. It's not significant savings but the payback period is less than 3 years and will reduce the bill by $5-10 per month. 

  • Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes
    6y

    @Ben Smalley Thanks!  Looks like the rehab crew installed new toilets with the 2 button flush option. Not sure of the gpf on that? Do you know how much submetering might cost?  (average)

  • Property Manager · Cleveland, OH · Member since 2016 · 67 posts · 53 votes
    6y

    Not sure on cost as we have no pursued it. You will have to do a lot of repiping. We did just 2 water lines on one bathroom at one of our properties and it was $750. Take that plus other fixtures in the building + the cost of the meter and it the payback would be >3 years so it seems like a no go. 

    Sadly the best way around this is purchasing larger buildings. I have a 6 unit building that has comparable water usage to some duplexes! 

  • Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes
    6y
    I wonder , Why is 6 units comparable to duplex?
  • James MaraditsPro Member
    Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
    6y

    Obviously this is going to vary greatly based on occupancy (1 person will use less water generally than a family of 5) and some other factors like how efficient your plumbing fixtures are, but I usually run numbers with a ballpark of $75 a month for water and sewer.  Ironically I just got an email from the water department with my bill for a duplex I own in Cleveland and it was $44.95 and sewer this month was $53.16 (2x 2bed units with 4 tenants total and newer fixtures).  

    The sewer bills vary by location and they even factor in the "ERU" which measures the roof and paved space on the property which creates water run off into the sewer system vs space where storm water would be absorbed into the soil.  There is a fixed service fee on both water and sewer bills, and there are fixed charges for waste collection and other service fees.  The actual water portion was only $9 of the bill.  With that being said having more units on the same water service won't be a directly proportional increase due to the fact that a good chunk of the bill is made up of misc fees unrelated to the water usage, which explains why the post above mentions a 6 unit water bill being similar to that of a duplex.

  • Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes
    6y

    @James Maradits

    Excellent response! Now I get it

    Thanks a bunch!

  • James MaraditsPro Member
    Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
    6y
    Originally posted by @James Runkle:

    @James Maradits

    Excellent response! Now I get it

    Thanks a bunch!

     Happy to help.  I just realized I wasn't super clear on my budgeting.  I meant to say I estimate $75 per unit for water at sewer (so $150 on a duplex, $225 triplex, etc) as a generally conservative number.

  • Rental Property Investor · Crestline, CA · Member since 2019 · 38 posts · 11 votes
    6y

    @James Maradits  Ok, that matches my research a little more clearly, but the thing I wasn't considering at all was those fixed charges.  Also, the water company in Cleveland, OH has the worst reviews by it's customers that I have ever seen. They must be difficult to deal with.

  • James MaraditsPro Member
    Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
    6y
    Originally posted by @James Runkle:

    @James Maradits  Ok, that matches my research a little more clearly, but the thing I wasn't considering at all was those fixed charges.  Also, the water company in Cleveland, OH has the worst reviews by it's customers that I have ever seen. They must be difficult to deal with.

    I'll just say that they are not my favorite organization to deal with...  Luckily once an account is set up there shouldn't be too much further interaction for the most part.

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