Tenant pay utilities?

by Landlordz · · edited · 1,068 views

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Landlord ·
I would never suggest including utilities unless required due to the rental set up. If utilities are included and the TT's abuse them, or more people move in and the usage drastically increases, you are unable to charge more for the extra usage and will be responsible for the additional/unexpected costs.
Landlord_70662 ·
To rent all inclusive of utilities. The answer depends on the type of rental you have.
Generally,
Pros:
Tenants prefer it due to fixed monthly expense.
So simpler advertising, which may attract more tenants.
Easier to manage (see caveat under Cons)
Can't think of any other pros

Cons:
Rental price appears less competitive. Without utilities included, can advertise a lower price.
Tenants do not take responsibility, so can abuse usage.
Becomes subject to Above Rent Guideline increase limits.
Minimizes responsibility on and cost to landlord.
Caveat: on smaller rentals, if tenant does not pay, landlord may still become responsible for bill, as utility company will revert account back to landlord, sometimes without advanced warning.


P.S. I think this should in the General section, not Off Topic.