Common heat / utilities

[Matt Honeyford]

We are considering purchasing a portfolio of properties. These properties have common heat (only one furnace / boiler). Currently, the owner is paying for heat. Roughly $1,500 a month across all properties.

What I’m wondering is what other strategies if any exist for transferring that cost to the tenants other than putting in new furnaces, etc.

One idea I had was to bill the tenants directly based on the square footage they occupy. An example of that would be: If the building equals 1,000 square feet and an apartment is 300 square feet, they pay 30% of the bill.

Curious if anyone has any others.....?

[Davido Davido]

Blessings to you brother.