Sub-Metering a 10- Unit building Water/Elect/Gas

[Jordan Thompson]

Good afternoon bigger pockets,

Currently I'm debating on getting a 10unit complex all 1bed/1ba.  The income is great and is within market for my area.  The current owner only has one gas meter, electric, water and sewage.  I would love to get this property as I see a lot of value add potential if I can eliminate some of the expenses from the utilities.  I have considered solar power but I would much rather Sub Meter the units.  Advice? Links? Experience? HELP please

-Jordan Thompson

Submeter, Submetering, Sub-meter

[Gino Barbaro]

@Jordan Thompson

Hi Jordan

look up a company called www.nwp.com.  They are A Ratio Utility Billing Company.  They can bill back the tenants for their share of the utility.  It is an awesome way for you to increase value.  It all depends upon if the rest of your market is doing it.  We are fortunate in our market that it is standard practice that tenants are billed back a portion of the water and garbage.

Let's say the tenants each get billed back 30 per month, that's 300 per month and a total of 3,600 per year. You have added 3,600 to your NOI and have increased the value of your asset by 45,000 assuming an 8 cap.

Great way to add value.

Good Luck

Gino