All Forum Posts by: Dion Watts

Hi y'all

Recently purchased my first multi-family home last month with my sister and are looking for renters at this time.  I am trying to get some information from experienced landlords how they have split up utilities in common areas 

Our house is set up as a 2-story duplex w/ a basement for laundry/storage.  Thereare two electricity boxes (one for each unit), but the power for the common areas is set up in an interesting way.  For example, the front stairway is on power box 1 while the back stairway is on power box 2.  Also, utilities like the washer will be on power box 1 and the dryer is on power box 2. 

To me, can be a seen as a fair split between the two units for the power for the common areas, but I am not 100% sure all renters would agree.  Looking for any incites on this Utility split.  Good idea? Bad idea? Any ways to make it better?

Thank you

Thanks everyone for the quick replies, wanted to share this document that I found on RI Business Basics outlining the difference in business structures in RI.

Types of Structures - Rhode Island - Nellie M. Gorbea (ri.gov)

RI does allow LLPs for real estate/property management business.

Based on my research LLP/LLCs offer similar* protection from liability, however LLCs can choose to be taxed as a partnership, proprietor, or corporation; whereas LLPs each partner reports profits on personal tax return.

Another difference is that LLC's have an application fee, annual report fee, and minimum corporate tax; whereas LLP's require none of these fees.

At a glance it seems like LLP is a better solution, but it seems like no one knows about them, which is why I am skeptical and a little confused

My sister and I just bought our first rental property together in Providence, RI! As we started going through the closing process a month ago, we began asking ourselves, "do we need to form an LLC?" The main concern is the protection of my sister's other business/assists if tragedy arises. After a little research we also discovered the option for a LLP ( Limited Liability Partnership). On paper they both seem very similar and really don't really have any tax benefits (please correct me if I am wrong on this) but we want to make sure we are protected in this investment.

Does anyone have any experience in this area and can offer some advice to some new real estate investors!