Shared Utilities - Suggestions on how the split utlities for Tenants in Up/Down Situation.

[rory69]

Hi,



I'm looking for suggestions on how to split the utilities for tenants that are living in an upstairs/downstairs scenario. As the landlord I do not wish to be involved with the utilities and would prefer the tenants work it out, but I'd like to offer my assistance with an agreement or form for them to use. Does anyone have or know of anything? Any suggestions are appreciated.



Thanks in advance for your help!

Rory

 

[2ndstory]

There are probably a number of scenarios that could work. If you want it really split, you need separate meters for the utilities for each level. The electric can be split quite easily by an electrician. He just needs to work together with the utilitiy company to get the permit for the extra meter and new panel etc. If you have two furnaces, no problem. If you have only one you could go on budget with the utility company and have the tenants pay you the budgeted amount above the rent.



Nik

 

[housingrental]

Leaving it up to the tenants works great until it does not

Then it creates needless problems - liability issues, arguments between units, good tenants wanting to bail, etc.

Please see other threads that go into everything in detail



Essentially your best options - and should be done PRIOR to entering into tenancy - are:



Individual metering - Best way if possible - Might not be possible / economically viable



Utilities included - Easier to rent, less potential for tenant conflict over utilties, lower net income from higher utility bills (rare, though in certain situations possible to get high enough rent to net more)



Put in contract landlord administers payment of utilities but tenants are responsible for XX% of bill - More time consuming to administer for landlord, potential for inter-unit conflict over appropriate usage, risk of non payment of utilities from tenant and not being able to evict (in certain area's you'll need to go to small claims for this but tenant will be able to stay in unit if they pay rent but not utilities)

 

[invst4profit]

Remember that in Ontario separate payment of utilities is not a LTB matter. As noted above non payment of utilities is a small claims court matter.

Best case scenario only buy properties with separate utilities, second would have utilities in one tenants name and have tenants split cost (this would partially protect landlord) worst case have utilities included in rent. Including utilities in rent places the landlord at risk due to the fact that tenants would have no reason to be concerned about "time of use billing" and generally tenants are wasteful of energy.



If you include utilities in rent landlords generally charge a premium for this to build in a protective buffer. In this way utilities should cost the tenant more than it would cost if they payed directly for there utilities but they get the false security of having a fixed monthly payment.

You need to contact Hydro, water and heating fuel suppliers to get a history on the utility costs for the property to know what to charge if utilities are to be included.

 

[JBagorio]

Hi Rory,


What I have been doing is the 60/40 percentage split for my up and down units that are not separately metered. So far it`s been working just fine. The main point is to make the tenants accountable by taking on one utility each. For example the upstairs take the Gas and the lover takes the Electric etc`Then tally up the difference at the end of the month.




You have to remember that people that gets into this shared dwelling situation should understand what their getting into. Their main objective is an affordable place to live and they are suppose to understand the consequences of being in this situation. So as part of your selection process choose only who understand the arrangement, and who is willing to compromise. After all it is a shared accommodation and they have to get along regardless or else it will not work. Make sure that you initiate both tenants initial meeting and explain the rules and the contract completely.














I hope my 2 cents helps. Cheers!











Jason

 

[kir]

No answers here as to the magic split ratio (50/50; 60/40).

What would you do if the main tenant (the one that has a contract with the utilities company) doesn't pay and there is a natural gas disconnection and it's winter?



What are the landlord's duties to both tenants?



Kir.

 

[housingrental]

Kir

Get gas hooked up asap

Work on better structure for future re my above post