All Forum Posts by: Stasiu Geleszinski

Todd, 

The way I have seen it done is that there is a flat $30 utility fee for the first resident.  For every resident thereafter an additional $10 is charged.  So if you have a 2 bedroom with 2 couples living there the additional charge would be $70/month for water/utilities. 

The goal is to really offset the water charge, not turn it into a profit center, because you run the risk of pricing out your tenants. 

Todd, I am a broker specializing in the sale of multi-family investment properties.  I see a wide range of how my clients handle water.  Depending on the age/construction of the property there are a number of solutions you can consider.  There are some vendors that I could recommend to implement a sub-metering system.  I have also seen some owners and management companies that have an "entry" fee for water charges, and then increase the water bill back fee per the number of occupants. 

First, I would look to see what your competitors are doing, and how they are implementing water and utility bill backs. Then use that information to craft your own plan for implementation.  Hope this is helpful. Please let me know if I can be of further assistance. 

where is it located?  Does it have aluminium wiring? Federal pacific breakers?  Is it gutted?

When evaluating a multi-family property, do you know what to look for?  Do you know what the expenses should be versus what the broker or owner is showing you?  Many owners will try and fudge expenses in their favor, showing you, the potential buyer, something that is not quite on par with what reality is.  When evaluating properties be sure to make sure they include the basics like:

These items at the very least should be included in any competent underwriting of a property, be it by a broker or the owner directly.  Before you make a buying decision make sure you understand the numbers, where they came from, how they were compiled, and what the time period over which they were compiled.