Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Land-subdivision costs may include a land survey, legal fees, application fees, clearing the site, supplying utilities, inspection fees and permit costs. PasswordUse at least 8 characters. Duplex has inconveniently been set up with everything running both units in the basement (water heaters, furnaces, electrical panels, etc). That’s the next big question. It’s springtime, the heater’s not on anymore, and therefore why should there be a high gas bill? Thank you for that question. Joe: It's a legal two-unit, but we want to buy it. Any common area utilities, such as lights and heating are another. We have a big bill this month,” and you got to figure it out. No other company on the planet let’s you process rent and screen tenants for free. You don't have proof of which unit used what, so you can't really charge the units for the electricity. Some communities or large apartment buildings don’t have separate meters. Doesn’t that make sense? I doubt splitting the utilities 50/50 or any other way would be legal. (b) Water, sewer and other city utility charges shall be paid at 50% of total bill by Tenant. It’s worth checking out. I'd have to charge a higher utility credit for the bigger unit. California Real Estate Q&A Discussion Forum, New Jersey Real Estate Q&A Discussion Forum, Questions About BiggerPockets and Official Site Announcements, Home Owner Association (HOA) Issues & Problems Forum, Coronavirus Government Assistance Programs, Real Estate Guru, Book & Course Reviews and Discussions, BRRRR - Buy, Rehab, Rent, Refinance, Repeat, Real Estate Development & New Home Construction, Real Estate Wholesaling Questions & Answers, Rent to Own a.k.a. I think you might be between a rock and a hard place but I think it’s best just to ask you landlord how they’re calculating the utilities, and then take it from there. Dennis, thank you for your reply. There’s only one meter for the whole building, so the community itself is lumped together and there’s absolutely no way to track it. Whatever the case may be, partially split utilities are a decent option for prospective duplex owners because some of the risk of a utility hoarding tenant is eliminated. We each want to buy one side but we don't want it to be a partnership. Anyone have ideas on how to best split the utilities or bill back to the renters? These systems are Haier, and they're 3 zones(can have a 4th) and are rated to -33 degrees. Thanks again. This can be accomplished with a Nest thermostat or putting a locked cover over it. Currently there is only one thermostat at the lower unit so I can see them cranking up the heat and then the renter upstairs is roasting so they open all the windows (duplex is in Wisconsin, so cold winters). Re: The Cost of Separating Utilities in a Duplex by Monica on March 17, 2008 @12:43 [ Reply ] The cost of an extra meter if utility doesn't supply it for free, Hot water tank, furnance, A/C if one already exists, new heat ducts and maybe even rewiring the entire duplex. It’s a duplex, and I don’t have separate meters on it. The heat is natural gas with cast iron radiators throughout the house. How your property is metered will determine how you charge for utilities. I don’t know if it’s really just the time of year. The situation you describe is reality in Wisconsin in many older rentals. It’s a bite-size Q&A show where I answer your questions about landlording and property management. Roughly what is the range this could cost? This is a PITA for renting it out, because the utilities are split, but only the downstairs tenant has access to everything. If something happens and it’s an extremely warm winter and it’s just not as cold as it usually is, then I’ll figure all that out and I’ll balance it out at the end, and if I owe them some money, I owe them some money, or vice versa. So maybe you shouldn't decrease your marketability by advertising a higher rent. Perhaps they owe me more, but I would actually never go back and ask for that. What I figured out is that the monthly average was about $120. Occasionally I’ll come across someone who has a lease and it doesn’t actually mention utilities at all. Wouldn’t it be better to split the utilities by the number of people in each unit, rather than square footage, and what are the pros and cons of doing so? I rent an apartment and multiple renters here are being charged a very high price for using gas. I am not a lawyer, nor is this legal advice, so if you do want the legal answer you should talk to a lawyer, because that’s what they do. You just have a bill that comes in and you say, “Okay, I don’t know who used up all the gas but we did. Landlord Forums & Rental Property Questions Splitting utilities in a duplex Apr 22 2018, 08:07; Buying & Selling Real Estate Discussion Adding Meters to Duplex Jun 20 2020, 20:21; Landlord Forums & Rental Property Questions Split utilities with tenants or pay utilities and raise rents? If you are honest upfront with the tenants you might suppress some of that noise since they've been fairly warned. 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