I’ve got a warehouse/manufacturing property that I am managing that is about 8900 sq. ft. that used to all be tenanted by one tenant. Now, that tenant moved out and we decided to break the property up into 4 different spaces; 4400, 3300, 650, & 550 sq. ft. So I’ve got tenants in all 4 spaces. I’ve looked into remetering to 4 different meters but it’s costly (around $15k), and we don’t want to fork out that kind of dough.
Question is, what is an effective route to keeping the electric in our name but making sure the tenants are paying their share. Right now, we have it set up where they pay common area maintenance (CAM) and that goes towards the electric. It’s important to cover this CAM issue upon signing the lease or else I feel like we would never get enough electric money.
I would say take the whole bill and split it up by sq. ft. and have them pay that route, but not all of the spaces have heaters and stuff like that. Any way you guys worked these out with your commercial tenants and properties?