VLOG #15 – Should You Include Utilities in Your Rent?
This week the question I received was, Should You Include Utilities in Your Rent?
My answer might SHOCK YOU!
This strategy is more specific to 2 unit properties. To create additional cash flow we’ve kept the utilities in our names and charge our tenants a premium in rent.
How do you do this?
First we determine market rent for both upper and lower units.
Next, we total all the utility expenses from the previous year and divide by 12, then add a percentage or a set amount ($200-$250) to be safe.
There are positives and negatives to every strategy, but if done correctly, it can earn you additional cash flow each and every month.
If you would like me to answer one of your questions, please reply to this email. I would love to hear your feedback or comments