Separate utilities or not with ADU unit in Santa Monica

[Ronnie S.]

HI Biggerpocket Team!

I am about to break ground on the remodel of my home and am building an ADU over my garage for the same property.

My question is....is it worth spending the money to separate the utilities or just have one water, electric and gas meter?

During my search on BP it looks like some people don't believe they will get the ROI on spending the money to separate meter on any property...then there are some that do RUBS, submeter...ect.

ADU's are unique and wanted to see if anyone has done one and what their experience and thoughts were.

Any and all advice is appreciated.

Thank you,

Ronnie

[Ronnie S.]

Any advice from any members who have been in this same situation?

[Michelle Kay]

I haven't been in your exact situation, but I have been in a tenant in an ADU which didn't have a separate meter. My rent included all utilities. If you don't have a separate meter, it's harder to charge your tenant for their share of the bill. When a tenant doesn't pay their utilities separately (which will obviously fluctuate in price depending on the season), they have less of an incentive to conserve resources and won't think twice to leave the AC running, lights and TV on, or take long showers, resulting in higher costs for you.