Chicago question on moving to individually metered water

[Gillian C.]

Hi Chicago folks. we have a 3-flat and we are looking at gutting the building to make the apartments individually metered for water and gas. Because our water bill is water, sewer, and trash, I'm wondering how this bill will split if we meter the water separately. Will Chicago now send us a bill for sewer and trash, or will they prorate trash to the tenants as well? Sewer is charged at 100% of water so I'm guessing/hoping that at least sewer will be pushed to individual units as well per their water usage, but wanted to confirm. Trying to figure out the total savings as we evaluate the ROI of this project. All thoughts welcome.

[Jason Albasha]

Take a look at other rentals. I have yet to see a rental in Chicago which has tenants paying water. This will be a huge turn off for tenants and I’d think twice about doing this. 

I understand the thought behind it, make tenants responsible for the bill, cut down operating costs, tenants will be more accountable if they’re paying, etc. yet all that only matters if you actually have a tenant. Any money saved would probably be offset by the possibility of having 1 month extra of vacancy. 

Everything can be factored into the rent. Landlord pays water? Rent is $1600. Tenant pays water? Rent is $1500. Catch my drift? The same stability you’re looking by putting the water bill on the tenant is the same stability tenants are looking for by having you pay the water. 

I can’t answer your question directly yet my advice is not to split it because 99% of Chicago landlords pay water and it would be harder to rent your place. Just factor it into the rent as stated above.