Water bill is 17% of operating Income

[Abad Marroquin]

I am analyzing an 12 unit apartment where the owner pays water and noticed that the water bill represents 17% of the total operating income. I don't own any apartment, so I don't know if this is within the norm. I also wonder how much would it be to sub-meter the water. I understand it varies from city to city. Has anyone done it on a similar property and how much did it cost. This property is a 2 story building 2 bd, 1ba built in late 1970's. 

[Account Closed]

My friend, water usage is something that can get out of control quietly and quickly if you aren't paying attention, and most landlords do not. True story- I was in negotiations for a 23 unit apt bldg, all 1-bedrooms. Having already owned a 12-unit bldg, and watching the water meter diligently on a weekly basis, I knew that normal water consumption in a 1-bedroom apt was about 500 gal/wk.  When the due diligence on the 23-unit showed much higher water consumption than my "nomal", I questioned the current owner about his $1800 quarterly bills. His response- "I think the bills are fine".

Bottom line- when the purchase was complete, and I got into things at the bldg, I found water leaks everywhere (toilets that ran all the time, sinks with a pencil thin water dribble that wouldn't shut off...)

I quickly addressed these findings, and, like magic, the water bill for the bldg settled in at under 500 gal/wk per unit (anywhere from 9-11.000 gal/wk). Quarterly bills are now under $900.  Later, when I explained the findings to the previous owner, with whom I am still friendly, he was aghast.  He thought his property maintenance guy had been doing a crackerjack job (I heard a ton of complaints from the tenants to the contrary).  I read the meter weekly.  If there's a problem, it's always a toilet.  Hope that helps.