Water prices in how to bake them into Rents

[Maria Bocanegra]

I am in the process of purchasing a multiunit where I will owner occupied. I am trying to figure out how to properly estimate water, sewage, trash and bake them into Rents.  The building is currently under contract and will eventually be rehabbed. I have some time to think this through so I thought I would reach out to all of you to see how you address this. Thank you so much!

[Cameron Tope]

Hey Maria,

If you're not going to separately meter like @Andy Nathan mentioned. Then we just divide the water bill up between the tenants based on each units square footage. For example, if side A of the duplex was 1,000-SF and side B was 2,000-SF, and the water bill was $150. Then side A would pay $50 (1,000/3,000 * $150) and side B would pay $100 (2,000/3,000 * $150). 

Does that make sense?