Utilities, specifically water

Utilities, specifically water

Central, OH · Member since 2013 · 40 posts · 0 votes

In the process of getting a SFH ready for rent. Property sits on over 2 acres, with a portion of it zoned commercial and 2 buildings on it that we will maintain use of. Separate drives to the home and buildings. Unless you were told that it was all one property you would not know.

We have split the electric service (one for home and another for a building) and are waiting until the spring thaw to have the gas separated as well (can't get the gas company out in the winter for a non-occupied structure unless we were to foot the bill. Waiting allows them to cover the costs).

Tenants will put electric and gas in their names and be responsible for those utilities.

Our water service is like so many where the bill remains with the home and not the actual resident. One of the buildings has access to water running the lines from the home however we have it shut off and have never used it due to misc. plumbing issues which will run in the $2000 range to have repaired.

Here is what we have come up with and wanted to get opinions. We could spend the 2 grand to solve the current plumbing issues in the building which we will occupy. We would then also have to pay the water company to run lines directly from the street to the building to the tune of approx. another 5 grand. (could be higher).

Desired scenario would be that we keep the current water bill in our name and put in the lease that anything above $60 will have to be paid by the tenant. In 2.5 years we have never paid more than the minimum bill to have service (our usage is very low). At our current bill of $10.35/month this gives the tenant nearly $50 a month cushion. Per the water company a typical home with our sq. footage and a family of 4 will use on average 7000 gallons a month to the tune of $41.70/month. Does this seem fair?

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  • Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    13y

    Hi,

    That sounds completely fair to me, especially since you have past bills and the water company's info on the average bill. Obviously, you'd have it all spelled out in the lease. I have been looking into multifamily properties for about 6 months now, and have only seen 2 where they bothered to have separate meters for water.

    Kelly

  • Contractor · Olmsted Falls, OH · Member since 2012 · 24 posts · 7 votes
    13y

    S. Perry- How is the other building supplied with water currently? Does the water main come into your building then feed the other? Does each have thier own supply line? I'm a little unsure of your piping configuration for each structure to be able to better advise on a solution.

    You can purchase a water meter from a local plumbing supply house and install it on the line feeding that building (not that difficult to do, either), and charge them whatever your local water rates are (or more if need be).

    Regards,
    Charlie

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    13y
    Originally posted by Charles May:
    S. Perry- How is the other building supplied with water currently? Does the water main come into your building then feed the other? Does each have thier own supply line? I'm a little unsure of your piping configuration for each structure to be able to better advise on a solution.

    You can purchase a water meter from a local plumbing supply house and install it on the line
    feeding that building (not that difficult to do, either), and charge them whatever your local water rates are (or more if need be).

    We were going to do this but the city sells an electronic read water meter for $283. That way we could separate the billing legitimately. Because we were told that in NY State you cannot charge for sewer & if you do charge for water you're supposed to add sales tax.!!!!!!

  • Central, OH · Member since 2013 · 40 posts · 0 votes
    13y

    The building receives its water supply from lines running from the home. Previous owner lived at the home and operated his business from the building hence no need for them to have separate meters.
    Water runs from the street to the home and from the back of the home to the building.
    Home and building are on separate septic tanks so no sewer bill to worry about.

  • Contractor · Olmsted Falls, OH · Member since 2012 · 24 posts · 7 votes
    13y

    If the water line comes into your facility then goes back into the ground over to the other facility, simply install a meter on the line going to that facility. This way you will know exactly what your tenant's water usage is per month and you can charge accordingly.

    Even if you hired a plumbing contractor to do this I can't see it being more than $500 labor/material.

    Hope this helps. Good Luck!

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