Multifamily rentals are great. Lots of renters providing lots of revenue under one roof. Having everyone in one building means lower acquisition costs and probably lower maintenance costs per renter.
Utility costs are a different matter. Many buildings have one heat source servicing multiple tenants. Or one water source. Because nobody can tell who used what, guess who gets stuck with the bill?
Sure you might be able to keep the rents higher to cover the shared utilities. Then again, you might not. Depends on what kind of rental market you find yourself in.
What you can’t control is the usage. If the landlord is paying for the utilities, there is nothing to stop the renters from being a little less frugal. After all, they aren’t paying the bill. Why should they worry about long showers, leaky toilets or making their apartment a little extra ‘warm and cozy’ in the winter?
With the heat, you might be able to control the usage with certain…
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.