How does one know who will pay for utilities?

[Nicholas Negreiros]

I’m just starting my real estate journey and I have this burning question that I can’t figure out.

How do you know or decide whether you or the tenant will pay the utilities (water/sewage, electricity, gas, garbage)? Does each landlord decide independently depending on convenience or cash flow, or are you supposed to follow what everyone else does in your market? Or maybe some other factor that I haven’t thought of?

[Theresa Harris]

Anything where if the tenant fails to pay, you are stuck with the bill....you pay and charge the tenant (ie get reimbursed).  Anything where the tenant fails to pay, it goes on their record....they pay directly.  Often water is tied to the homeowner, things like electricity is with the occupant.

You don't want to include utilities in the rent as the tenants typically don't think/care about usage resulting in high water bills as they aren't paying for extras.