I just include the utilities in the rent.

It cash flows without the utilities split but I am planning to hold onto for a long time so splitting the utilities seems to make sense.

@Blair Ross JrElectric/Gas: Contact the utility provider to see if separate meters are allowed for your property.

If you’re In a title state make proof of utility pay off a condition of closing.

This is not the utility company's responsibility.Your lease should state the tenant is responsible for maintaining utilities.

Utilities for the Rented HouseDeductible as a rental expense from when the property was placed in service (ready to rent).

Raise the rent to cover more than the utilities 

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So now we cover utilities for both units and the new tenant pays a higher amount too on the back unit to cover all the utilities with a great profit.  

My only concern is I believe most ADUs all tie into the same utilities and would be 1 bill.