How would you break down this utility bill?

Question

Hello BP,

I have a duplex in Washington State (Spokane City/County) with inherited tenants.  In one lease, it states the landlord will pay up to $100/month for water & garbage specifically.  In the other lease, it states the tenant is responsible for all utilities.

When breaking down the utility bill from the City (water/sewer/garbage), my thought is to pay for 1/2 of the water and 1/2 of the garbage based on the "pay up to $100/month" for one unit.  Also listed on the bill is sewer and water/wastewater capital.  This charge is for capital improvements and upkeep on the water/sewer systems.  I plan to break the charges in half for both tenants and then cover 1/2 of the water and 1/2 of the garbage based on the current lease- not any of the sewer or other related charges for capital improvements.

Thoughts?  Concerns?  Would love to hear your input!

David Clinton III · Answer

Ah, I see what you're saying... the last lease is difficult to follow based on the way it's actually billed for the duplex. And best not to make any changes in the current environment!

Matt Gilroy · Answer

@David Clinton III Good ol WA State!

Matt Gilroy · Answer

@David Clinton III Thank you for the reply!  I would not have set the leases up this way but I am not able to change any terms or conditions based on the current environment.  I'm trying to follow the lease of the previous owner but not pay more than I have to.  For future tenants, I will include either increased rent that includes w/s/g or a flat fee per month.

David Clinton III · Answer

@Matt Gilroy, don't make it complex for the tenant, even if you want to make it complex to figure it out or justify your own numbers and analysis. They don't care to understand why you're making the choices you are. Make it a flat dollar amount every month that covers their utilities, rather than fluctuating every month. It just isn't worth the hassle. $100/month is fine. Better yet, just increase the rent you're asking, and say utilities are included.