Include utilities? Your thoughts...

Do you recommend including utilities in the rent? Does the higher rent typically cover the utilities sufficiently? Which utilities do you recommend including?

Thanks for your thoughts!

My dad had 20 units single family as well as an apartment complex. He always included water. His rational was that it is the smallest of the bills, and it gave him a reason to enter the residence to look around as he would fix water leaks.

I don’t include any utilities because I don’t want to bother with anything that I don’t have to, and that is only extra work to me.

Good question. I was just thinking about this the other day and I decided that I would leave them (tenants) responsible for their own utilities. I like to apply the K.I.S.S. method (Keep It Simple Silly!).

I pay water and trash! Reason for that I do not want them not to pay them Water is still fairly cheap and I want green grass! I pay trash because I don’t want a huge pile sitting around my house! But other then that sit in the dark and take a cold shower for all I care! as long as the house looks clean and the grass looks green!

You don’t want to pay any utilities because you’re taking away the tenant’s reason for economizing. If you pay the water, why shouldn’t they take a 2 hour shower every day. If you pay the electric, why shouldn’t they run the air conditioner 24/7 with a window open. More importantly, what do you think will happen when the tenant is mad at you? Ever pay a water bill from a tenant that left all the faucets open for a month??

I don’t need that kind of trouble!

ever paid to replace a dead lawn because the H.O.A. is having there attorney call you 24/7???

Have you ever paid to remove three months of trash??


I agree do not pay the lights and heat and after the rent is late do not pay the water! It will not report on your credit! So shut it off call the water company they will shut it off real quick!People move out when there is no WATER! Till then it is cheaper then the options!

When you put it that way, Maybe the tenant will get trash and water paid for and the rent increase. :slight_smile:

In investing as long as something makes common sense what else are you looking for! Well yeah they are going to pay more for rent. On the other hand you get a peace of mind!

for things like water, if you have ore than one tenant, then some localities will require a separate meter in order have them pay that utility

It makes sense to pay a utility that unpaid will affect the owner. I Dale City, VA they charge about $40/month for waste water. If you get behind by 3 months or so they cap it at the street. A week later your sewage backs up in the house. If your tenants move out and you pay the balance, they still want another $300 to uncap the pipe. I wouldnt leave that bill up to the tenants.

that is funny this morning I was going to hire a new property manager that told me the same thing I should let the tenant pay water bill, sewer bill and Trash. I had to hang up gotta look for a new property manager.