Duplex on the Same Meter

[Cody Emrick]

Hello all,

This is my first post. I have been studying up on real estate investing over the past couple of months. Mainly, I have been listening to the BiggerPockets podcast, reading real estate investing books and watching YouTube videos. I feel confident about making a smart purchase, and I am looking to purchase my first rental property.

I came across a duplex. It needs some work, but the numbers are good on the property. One of my main concerns is that the units do not have a separate meter. The current landlord pays utilities for one unit, and charges utilities for the second. The utilities that the landlord covers run about $175 per month. Obviously, this is not an expense I want to cover. 

Does anyone have experience with a similar situation? If so, did you lower the rent in order to make up for part of the $175 that the current tenant will now need to cover?

Any information and insight is greatly appreciated.

Cody