Flat utility fee or bill-back on a three room house, my numbers move $90 either way
Still in diligence, so nothing is signed. The house is a 3 bed 1.5 bath in a working neighborhood about a mile from a community college. Whole house would lease around $1,650. Three rooms at $725 each is $2,175, and that is the reason I'm looking at it at all.
What I can't settle is utilities. Seller gave me 14 months of bills. Electric and gas together average $268 a month, but the range is $161 in May to $402 in January. Water and sewer is a flat-ish $95. Internet I'd buy myself, about $70 for something that actually holds up with three people on video calls.
So call it $433 a month all in, or $144 per room. If I fold that into rent I'm advertising $869 a room and the listing looks expensive next to the $700 rooms nearby. If I advertise $725 plus a $145 utility fee, my headline number competes but I'm the one eating January when three people run space heaters.
The third option is a flat $110 fee and I absorb the overage as a cost of keeping rooms full. That's the one I keep drifting toward and I don't trust why.
So the decision in front of me is which of those three I write into the lease before I make an offer, because it changes my year one cash flow by roughly $1,100. What am I not accounting for?