Utility Protocols in Chicago

[Jennifer Rodriguez]

Hi everyone,

I'm a new investor and beginning the education process before deciding to buy my first multi-property in the city of Chicago and/or surrounding cities. I had a question in regards to utilities. Does anyone know what I can and cannot charge tenants (i.e. water, gas, sewer, garbage, etc..)?

I was thinking of having them pay for their own water, gas, and electricity and I take care of sewer and garbage. I rather do that to make sure it gets done and taken cared of appropriately, but I wanted to make sure if that's okay!

Thanks in advance!

[Jeff Burdick]

Originally posted by @Jennifer Rodriguez:

Hi everyone,

I'm a new investor and beginning the education process before deciding to buy my first multi-property in the city of Chicago and/or surrounding cities. I had a question in regards to utilities. Does anyone know what I can and cannot charge tenants (i.e. water, gas, sewer, garbage, etc..)?

I was thinking of having them pay for their own water, gas, and electricity and I take care of sewer and garbage. I rather do that to make sure it gets done and taken cared of appropriately, but I wanted to make sure if that's okay!

Thanks in advance!

 Hi Jennifer.  I'm an investor in the city of Chicago.  Which utilities you can have your tenants pay for largely depends on the property.  Many houses in Chicago have one boiler to heat the 2-4 units.  Sometimes one electrical account will provide electricity to multiple units.  In cases like these, you almost have to pay for the utilities yourself and market the property with them included.  You can factor that into the rent price though.  Tenants will pay a premium in rent to have utilities paid for by the landlord...particularly for heat.  I have a building where I charge $50 extra in each unit for heat included in each unit and the annual heat bill never equals the total of that.