I just include the utilities in the rent.

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

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

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.

@Max Bellino For smaller properties like your 2–4 unit multifamily buildings, an online cost segregation study is a quicker and more cost-effective option, providing sufficient accuracy for straightforward properties.

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

Any recommendations on ways to best utilize this new income would be greatly appreciated. 

I’m thinking of suing the utility companies for not notifying me of non-payment creating unsafe/ unsanitary situations that led to house fire, thousands in damage.

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.  

I would definitely go with a utility cap.