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Landlord Utility Cost Calculator
Itemize the utilities you absorb as the landlord and total the annual cost. Includes a vacancy-carry adjustment so vacant months don't blindside operating expenses.
hallway lights, exterior, lawn
utilities still run during vacancy
Monthly utility cost (avg)
$200
Annual total
$2,400
includes vacancy carry
Occupied-month cost
$200
Reading the number
Most US small multifamily owners pay water/sewer/trash and bill back to tenants via RUBS or sub-metering. Single-family rentals usually have all utilities in the tenant's name. Common-area costs (lawn, exterior lights) are landlord-only regardless.
During vacancy, you keep paying utilities you'd normally cover, sometimes plus minimal heat/AC to prevent damage. Roll vacancy carry into your projected operating expenses so vacant months don't surprise you.
How to Use
- Enter the monthly cost for any utility you (the landlord) pay directly. Leave $0 for tenant-paid items.
- Add common-area utility costs (hallway lights, lawn, exterior).
- Enter expected vacancy months per year — utilities still run during vacancies.
- Read the average monthly utility cost (used in opex projections) and the annual total.
Frequently Asked Questions
Should landlords include utilities in rent or bill separately?
Single-family: tenants typically take everything in their own name. Small multifamily: landlords often pay water/sewer/trash and bill back via RUBS or sub-meters. Large multifamily: utilities are usually billed back unit-by-unit through sub-metering or third-party billing services.
What's RUBS?
Ratio Utility Billing System — landlord pays the master utility bill, then divides it among units based on a fair-share formula (square footage, occupants, or fixtures). Cheaper than sub-metering, less precise.
Why does vacancy raise utility costs?
Vacant units still consume minimum water (drips), need heat to prevent freezing, and may need light/security electricity. Bills don't drop to zero. Plan a vacancy-month utility budget that's close to occupied levels.
Are landlord utilities tax deductible?
Yes — utilities paid by the landlord are deductible operating expenses on Schedule E. Keep bills and bank records as proof. Utilities billed back to tenants don't count as income or expense.
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