Sunday, February 7, 2010

How should I split the utilities for a 2 family home I'm renting out that only has one meter?

I have a house that's a one family house, but I wish to rent it out as a 2 family. There are 2 kitchens, separate entrances, separate bathrooms except there's only one set of meters (electric, gas, water). What's the best way to split this between the tenants? One unit is a 2 bedroom, the other is a one bedroom.How should I split the utilities for a 2 family home I'm renting out that only has one meter?
Don't split it. Make both tenants pay the entire thing.How should I split the utilities for a 2 family home I'm renting out that only has one meter?
You really need to have separate meters installed before you rent it as two units. I can tell you you'll have problems with tenants if you ask them to split the cost because one set of tenants will be the kind that conserves to keep cost down and the other will not care and will use more
I would definitely invest on getting separate meters. It would save you future problems with your tenants. You don't want upset people living in your home, they just won't take care of the place properly. If money is an issue then do it a month or so after both families have moved in.
Is it zoned as a multi-family dwelling? If it's not then it's illegal. Are you living in one half? If so, you could rent it as ';utilities included.';
2 br = 2/3rds the utilities 1 br = 1/3 rd the utilities
you do it by square feet of each unit. One is larger then they pay more simple math here
If you own the house and the utilities bills will be paid by you, then you must add into your rent for both units (no matter how many persons) enough money to cover your utilities expense.


If your bill for your family of 4 (lets say for example) over a years time (12 gas %26amp; 6 W%26amp;E) totals 1000 for the year - divided by 12 months equals 83.33 per month - and they'll be 4 persons living in your home as two separate family's, then each would be responsible for approx. 45.00 for each unit. But to be fair - if one unit is only one person then reduce it to about 40.00 and if 2 bedroom unit is occupied by 3 or more people add 20.00 more. (so 40 %26amp;


65) Please don't make the mistake of saying to your prospective tenant(s) they they will be paying separately for the utilities -- that's world war 3 - when they compare notes. Keep an eye on your bills as they come in, and compare them to the last years (jan 08 to jan 09) and if your tenants are abusing their utilities - using more gas or electricity, write a paragraph into the lease (rental agreement) that tenants are going to have to pay a separate surcharge on their monthly rent if utilities are exceeded. The last thing you want to do is let tenants put utilities in their name - Phones %26amp; Internet excepted.
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