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Updated over 1 year ago on . Most recent reply

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Kyle N.
  • Rental Property Investor
3
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5
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Turning sfh into a mfh, how should utilities be handled?

Kyle N.
  • Rental Property Investor
Posted

Hello BP folk! I am currently in the process of purchasing a SFH that has the perfect layout to add a wall and kitchen and make a duplex. I already got permission from the county so that is one major hurdle out of the way. My question is related to utilities. I can have a new electric/water meter added or I can offer to pay the utilities myself. I am buying as a primary residence so I will be living in the smaller unit for a year while renting the larger portion of the home. Paying the utilities seems to be the easiest but I am smart enough to know I'm not smart enough so I appreciate any input from those who have been down this path.

Most Popular Reply

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Julien Jeannot
  • CPA, Real Estate Broker & Investor
  • Seattle & Woodinville, WA
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Julien Jeannot
  • CPA, Real Estate Broker & Investor
  • Seattle & Woodinville, WA
Replied

Either way works as others have pointed out.

Its convenient to have separate meters, but the cost may not be worth it. Also consider the exit of the property. Does it make sense to sell the property with 2 meters or 1?

Either charge them for the utilities. I've got a duplex with shared water, monthly expenses doesn't move past $30/unit so I don't worry too much. It get rolled into the rent.

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