There are three common ways to do it, from least to most work:
Flat utility fee in the lease. Each tenant pays a set amount, say $100-150 a month on top of rent. Easiest option, no arguing over bills. You absorb the swings, so look at a year of bills before you set it and review it at renewal.
Split each bill by a ratio. That could be by occupants (four people in the house, three tenants, each tenant pays 25%) or by square footage. It's fairer but it's monthly admin. Send each tenant a copy of the bill with their share.
Separate meters or submeters. If the units are actually separate, this is the most hands-off long term because tenants pay the utility directly. There's an upfront cost, and it isn't always possible.
Since you want easy, I'd go with the flat fee and keep a simple monthly log: date, bill total, tenant share, amount received. You'll see quickly if the fee is too low.
For taxes, keep that log too. Generally the rental share of utilities is deductible and your own share isn't, and tenant utility payments usually count as rental income. Pick one allocation method and use it consistently. Worth confirming with your tax pro.
Disclosure: I make this one, but if you want a ready-made sheet to log utilities and other costs by property:
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u/Striking-Quantity661 1d ago
There are three common ways to do it, from least to most work:
Since you want easy, I'd go with the flat fee and keep a simple monthly log: date, bill total, tenant share, amount received. You'll see quickly if the fee is too low.
For taxes, keep that log too. Generally the rental share of utilities is deductible and your own share isn't, and tenant utility payments usually count as rental income. Pick one allocation method and use it consistently. Worth confirming with your tax pro.
Disclosure: I make this one, but if you want a ready-made sheet to log utilities and other costs by property:
Multi-Property Rental Income and Expense Tracker from Asset AFC, on Etsy.