Granny Flat - splitting Bills?

Discussion in 'Granny Flats' started by noviceInvestor1, 3rd Dec, 2018.

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  1. noviceInvestor1

    noviceInvestor1 Well-Known Member

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    Posting this question here as I couldn't find any related info under the GF forum:

    If I buy an IP (in Sydney) with a freestanding 2-bedder GF, or, decide to build a GF in the backyard of an existing IP (in Sydney), and I put two separate tenants in it (unsure about whether the whole property will be professionally managed or self-managed)..... then how do I go about splitting bills for utilities - water, electricity, gas & telephone/internet line...?

    Thanks!
     
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    In some states you'll need a separate meter or submeter to be able to charge

    In one i manage here in SA it only has 1 meter and we charge 80/20 on water, gas and electricity and its written into their lease as such. They sort out internet themselves.
     
  3. geoffw

    geoffw Moderator Staff Member

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    I've been told that in NSW anything charged to the tenant must be separately metered, as @D.T. says. Without separate meters, you can only charge a rent which includes utilities.

    I've had a separate electricity meter put on a property I owned previously.
     
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  4. euro73

    euro73 Well-Known Member Business Member

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    Separate gas, electricity and water meters on all the dual occ's I sell.

    You will need to order a second set of rubbish bins from council though :)
     
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  5. NHG

    NHG Well-Known Member

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    As above. Seperate meter, or sub-meter (cheaper). I paid $800 each from memory.

    If you choose to not meter, you can increase the rent and take a punt.

    The latter method has disadvantages:

    1. Prospective tenantse see higher rent and don't read the fine print.

    2. Tenants misuse the utilities. Eg. I paid for water before installing a seperate meter, tenant was having a bath EVERY day.

    Note: When installing secondary dwelling, you may need to upgrade the power from the street. This is a cost you should account for ~$2k from memory.
     
  6. Buynow

    Buynow Well-Known Member

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    Lots of people have a bath every day - it’s normal use, not misuse.
     
  7. Tony3008

    Tony3008 Well-Known Member

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    In the good old days you could have advertised "British applicants only" :)
     
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  8. NHG

    NHG Well-Known Member

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    Bath. Not shower.

    Electricity is worse. Walked into houses on multiple occasions where aircon was on, tv on, back door open, nobody home.
     
  9. AlbertWT

    AlbertWT Well-Known Member

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    so how about separate NBN connection?
    Is that cheaper than a phone line for the granny flat?
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    The tenant doesn't pay these costs so why would you suggest separate rubbish (unless one bin is insufficient)?

    Register the property as a multi-dwelling unit (MDU), NBN will figure it out. NBN is/will be your phoneline.
     
  11. Propertunity

    Propertunity Well-Known Member

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    Because then there are no fights about who filled it up or who has to put in out on collection day. The more separate they are, the better neighbours they will be.
     
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  12. euro73

    euro73 Well-Known Member Business Member

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    Council requires 2 sets of bins . Owner pays for it. Its a relatively modest one off cost. Nevertheless... councils never miss a chance to raise some extra income :)
     
    Last edited: 16th Apr, 2019
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