What should you figure % of monthly gross rent for untiles

[Andrew Strauss]

Thinking about getting an STR place in the desert in Indio California. Wanted to know what % of monthly gross rent you should figure for the electric/heat and water bill.

[Dave Stokley]

That’s a backwards way of looking at the question. Do your utility providers bill you based on your revenue? No, they bill based on usage. You just need to figure out what average costs are in your area, which can be extremely seasonal based on location and heating/cooling systems. 

I know my cable/internet bill is gonna be about $135/month. Electric can be $300 in the summer and under $100 in the winter. Water and sewer are pretty stable but very location dependent. Landscaping and yard work should be pretty consistent and snow removal you just figure X times per year at $y per occurrence and add like 20% for cushion.