Consider checking with some neighbors to see what their water bill looks like.I'm surprised they back-charged you for previous under billings in October 2024....i thought the bill was just adjusted moving forward. 

No issues and tenants are renewing.That indicates tenants were paying below market rates.If the market rate for a 2-bed/1-bath apartment is $1,000 without utilities included, then he should adjust his rate to $1,100 because it includes $100 in utility cost.

Rents, yes 100% I do adjust billing and it is above standard tenancy rates because they are doing it for business revenue. 

If comps are scarce, you might also consider the replacement cost approach, looking at what it would take to rebuild and adjusting based on market conditions.

•Monitor the competition closely and adjust pricing accordingly to stay competitive.4.

Is my CoC return solid, or do I need to adjust anything based on my market?

It will get adjusted on the next billing statement as a credit against your balance once you turn it on in your name (You still have to pay around $14-20 per month for sewer whether utilities are on or not).

A public insurance adjuster works for YOU!

While it's still possible to use older comps if they’re in the same neighborhood, you’ll need to adjust for differences in condition, renovations, and updates. 

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?