Pay the heat and hot water for the tenant? NOT ME!
In theory, the rent should be higher to cover the utilities, so the usual expenses=50% of rent still applies. The one building where I saw really high expenses did include heat with the rent. But, the bulk of the excessive expenses were in the maintenance. If it had been in line with the 10% of gross rent guideline, expenses would have been 52% instead of 67%.
Submetering is not always an option, but if your circuits are easily separated between units, or if you can separate just common areas, then it worth checking on the cost of doing so. Then you can bill the tenants for some or all of their actual usage, depending on what you are able to split off.
shutting them off for several hours at night when most are sleeping, and again in the daytime when they are working. Same for AC units can be wired into a " wind up" timer that automatically shuts off after three hours of operation so they don just let it run all day when the home is empty.
find metering systems that you could attach to separate out bills. Problem is, that all the other buildings have the heat included in the rent, so you have to charge corresponding less. It does seem fairly common to have some sort of utility billback.
You can use the timer setup for electric water heaters also, Air Force High Heels
Almost every 8 12 unit building I looked at here is owner paid heat and hot water. And water, for that matter. Usually, its because there is a common boiler providing all the heat. I did Nike Air Force 1 Flyknit Low Sale
utilities, you MUST be vigilant in preventing abuse from the tenants. Set up your house rules with specific regs, and CASH fines.
Beachbum gave some good advice if you decide to buy a building with owner paid heat/hot water. Personally, I never buy buildings with such an arrangement. Tenants are VERY wasteful especially low income tenants (most renters). While you can try to minimize Air Force 1 Flyknit Low Multicolor your expenses, tenants are very resourceful. For example, if you put one of those locked plastic boxes over the thermostat, they put a ice bag on the box if they want more heat. Apartment too hot during the winter they open a window (it not their money). You get the idea and this only assumes that the tenant doesn care not that the tenant is mad at you. When the tenant is mad, the thermostat will go all the way up and the doors and windows will be open. Additionally, what does the landlord do when there is a sudden spike in energy costs (like the recent natural gas price spike)? The answer is that the landlord loses a bunch of money.
Get the Free eBook from BiggerPockets
Building practices vary by region. It would be foolish to bypass a potential deal just because owner pays certain utilities. You just need to understand HOW the system is designed, and then determine if it is more cost effective to change the overall configuration, or simply mitigate potential abuses and simple inefficiency.
Landlord pays heat and hotwater
Get The Ultimate Beginner's Guide to Real Estate Investing for FREE read by more than 100,000 people AND get exclusive real estate investing tips, tricks, and techniques delivered straight to your inbox twice weekly!
If you are paying the heat, you better ensure you have adequate insulation, weatherstripping, and storm windows. Be sure exterior doors have closers that work. You also need to be sure the tenants do not have access to the temp control. On hot water/steam systems, I used to install a timer that would " cycle" the system off periodically. If you have a really cold snap, you can bypass the timer and let it run 24/7. You can get a battery operated monitoring device to log the actual temperature in an area over a 24 hour period to verify you are providing adequate heating. Obviously, regular service and filter changes are crucial for forced air systems.
If you ARE going to end up paying the Nike Air Force 1 High Black White
BTW, TC suggestion about installing electric baseboard heat is a good one. With natural gas prices up, tenants want electric heat. Electric baseboard heaters are cheap and easy to maintain/replace.
Women Nike Air Force 1
New Balance Running Shoes For Women
Nike Air Force Blue White
Nike Air Force 1 Mid 07 Men's Shoe Black
Nike Air Force 1 Flyknit
New Balance All Red
Nike Air Force Pink And Black
New Balance Dark Blue And Orange
Nike Air Force 1 Low Womens Red
New Balance J Crew
Nike Air Force 1 Mid White Women
Nike Air Force For Girls 2017
New Balance Sneakers On Sale
Nike Air Force On Feet Women
Nike Air Force One Mid 07