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Updated over 4 years ago on . Most recent reply
Up/Down Duplex with 1 washer/dryer - Splitting Utilities?
Hi Everyone, I'm hoping someone can help out on this unique situation. I currently have a duplex under contract here in Saint Paul and I'm trying to get my ducks in a row before closing. The duplex has 1 washer and dryer in a common basement area. The washer is metered (hot water heater + electricity) with the floor 1 tenants, the gas dryer is metered with the floor 2 tenants. Can I legally have them pay their own utilities with this current setup?
I've heard a lot of different answers ranging from yes, you just notify them in the lease, or yes, according to Statute 504B.215 you can, to no, you need a common area meter. I've also quoted putting in a new set of washer/dryer unit so that each side has it's own, but that's not cheap. So confused! Thank you in advance!
Most Popular Reply
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- Real Estate Broker
- Minneapolis, MN
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@Ryan C. If your providing that laundry unit use to the tenants, as an amenity of their lease for say unit 2, and it incures expense to unit 1, no you can not. I mean, sure you "could" but your legally well outside of the lines so if you ever have an issue with either tenant and need to evict, and tenant brings that up in court, it's gonna bite you in the butt.
Simplest work around is factor utilities into rents, I know your gonna say "but what if they use more then I factored", yeah, what if, as in exactly how much $ difference can it be? Not that much right, too many act as if it's going to be hundreds upon hundreds, and it never is. All-inclusive rental units are a big plus in tenants minds, which is worth higher rents, and done right is a net profit.
Not to mention simple, it's just plain simple and that time savings is worth money too.
So, include utilities into rent, raise rents to cover, market the units "UTILITIES INCLUDED" and make life simpler on yourself.
- James Hamling
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